Back to top

Press Releases

The Zacks Analyst Blog Highlights: Netflix, Facebook, Amazon, Robert Half International and Manpower

NFLX FB AMZN RHI MAN

 ZacksTrade Now


For Immediate Release

Chicago, IL – January 2, 2013 – 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 Netflix Inc. ((NFLX - Analyst Report)), Facebook ((FB - Analyst Report)), Amazon ((AMZN - Analyst Report)), Robert Half International, Inc. (RHI - Analyst Report) and Manpower, Inc. (MAN - Analyst Report).

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 Monday’s Analyst Blog:

Netflix to Be More Social in 2013

Reportedly, Netflix Inc. ((NFLX - Analyst Report)) is planning to introduce “social features” for its domestic subscribers after the United States Congress passed a recent bill, which will allow it to share customer rental data on social networking platform Facebook ((FB - Analyst Report)).

Although Netflix did not provide any further details (currently nothing is available on the company website), a company spokesperson told news website Talking Points Memo (“TPM”) that they plan to introduce the service in 2013.

The bill removes restrictions under the Video Privacy Protection Act of 1988 that prevented companies from sharing rental histories of customer video. Although many states such as Connecticut, Maryland, California, Delaware, Iowa, Louisiana, New York, Rhode Island and Michigan have enacted separate laws to provide greater protection, Video Privacy Protection Act of 1988 has been the strongest protection for consumer privacy.

The Act protects consumer privacy against a specific form data collection. The Act prevented disclosure of personally identifiable rental records of “pre-recorded video cassette tapes or similar audio visual material”. However, the new Video Privacy Protection Amendments Act of 2012 allows companies such as Netflix to share video preferences of consenting customers through social media. It also protects consumers by not only asking companies to obtain their consent in writing (Internet forms are also allowed) but also allowing them to withdraw their consent any time.

Netflix has been lobbying against the restriction for a long time. The law prevented it from offering the social sharing service in the US, which it was already offering in Canada and Latin America. The amended Act removes this major obstacle for Netflix as its US subscribers (approximately 30 million) will now be able to link their Netflix accounts with their Facebook accounts. They will also be able to share their favorite movies with friends over the Internet through the Netflix Facebook app. We believe that this service will boost Netflix’s domestic subscriber base going forward.

However, we believe that Netflix will not be the sole gainer from the newly amended Act. Netflix competitors such as Hulu will also benefit from the new rules as it already began offering Facebook integration to its subscriber’s way back in 2011. Hulu is currently facing a case under the old law in California, which we believe it will settle as the new Act comes into force.

In such a scenario, we believe that Netflix’s superior content will be the ultimate deciding factor in the ongoing battle for online supremacy. Netflix’s new and exclusive content offerings to its subscribers are the company’s biggest USP compared to its closest peers, Hulu, HBO and Amazon ((AMZN - Analyst Report)).

However, the company continues to see cost escalation due to higher license and renewal fees. Netflix needs to pay $5.0 billion for streaming content obligations, out of which $2.1 billion is to be paid within the next 12 months. We believe that these huge payment obligations would weigh on the stock going forward.

Thus, we have a Neutral recommendation on Netflix over the long term. Currently, Netflix has a Zacks #3 Rank (Hold).

 

Robert Half Completes Holiday Program

Considering the holiday season, the world’s largest provider of skilled professionals Robert Half International, Inc. (RHI - Analyst Report) distributed more than 14,000 toys and games, food and household items across North America through its annual holiday drive program. Robert Half has been running this program since 2006 and has provided more than 70,000 toys and other items to local Boys & Girls Clubs and other agencies, since then.

Besides being socially active, Robert Half has witnessed strong demand for specialized staffing and consulting services, particularly in the U.S. In order to meet this demand, Robert Half’s subsidiary Protiviti recently announced its decision to purchase the assets of privately-held SusQtech Inc. to provide its key clients with software consulting services.

By combining SusQtech’s consulting services, Protiviti is expected to boost its Microsoft technology-based services. Further, SusQtech’s customer support services will help Protiviti to expand its IT consulting portfolio, which provides a wide range of software services.

We believe that the demand for the company’s services, in particular its staffing services, is highly dependent on the state of the economy and the staffing needs of the company’s clients. A gradual improvement in economic conditions and in job markets in the U.S. has led to the rise in the demand for the company’s specialized staffing and consulting services. Moreover, the company is expected to benefit from higher demand for financial services professionals post the financial crisis.

We currently have a Neutral recommendation on the stock. Robert Half, along with its peer Manpower, Inc. (MAN - Analyst Report) carries a Zacks #3 Rank (a short-term Hold rating).

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

About Zacks

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: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

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.

Media Contact
Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

http://www.zacks.com

 

 

 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UNITED THER… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%