For Immediate Release
Chicago, IL – February 8, 2012 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Verizon Communications (NYSE:VZ - News), Coinstar Inc. (NasdaqGS:CSTR - News), Netflix Inc. (NasdaqGS:NFLX - News), Amazon.com Inc. (NasdaqGS:AMZN - News) and Comcast Corp. (NasdaqGS:CMCSA - News).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Tuesday’s Analyst Blog:
Verizon to Offer Streaming Services
The largest U.S. mobile service provider Verizon Communications (NYSE:VZ - News) has formed a joint venture with Coinstar Inc. (NasdaqGS:CSTR - News) to launch nationwide video rental and online streaming services comparable to those of its rival Netflix Inc. (NasdaqGS:NFLX - News).
The venture would combine Coinstar's Redbox new release DVDs and Blu-ray disc rentals with an on-demand streaming and download service from Verizon. The service is slated to be introduced in the second half of the year. While the financial terms were not disclosed, Verizon will hold a majority 65% stake in the venture while Coinstar own the remaining 35%.
The success of both Verizon and Coinstar will depend on the pricing of the video streaming services and the quality offered in the booming subscription video service market. The alliance would strengthen their respective competitive positions against Netflix and other online rivals like Amazon.com Inc. (NasdaqGS:AMZN - News) and Hulu Plus.
The pact represents Verizon’s first venture in video streaming beyond its operating region. The company currently offers Web video services through its FiOS TV service, which is gaining strong momentum in the U.S. market despite stiff competition from cable providers like Comcast Corp. (NasdaqGS:CMCSA - News).
We believe the venture is highly beneficial to Verizon, as it will attract new subscribers and add a new line of business, in turn drawing additional revenues. Coinstar revenue jumped 33% in the fourth quarter of 2011 largely backed by Redbox. In addition, we expect Redbox to boost Verizon’s profitability when the venture comes online, despite additional expenditure on the service.
At year-end 2011, Redbox had 35,400 kiosks nationwide in McDonald’s, grocery and drugstores while Verizon had 4.2 million FiOS Video customers and 4.8 million FiOS Internet customers.
While waiting for the company to move ahead with the venture and its pricing, we are maintaining our long-term Neutral recommendation on the stock. Currently, the stock retains the Zacks #3 (Hold) Rank for the short term (1–3 months).
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: https://twitter.com/zacksresearch
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
More From Zacks.com