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Embattled Blockbuster Inc. could be heading toward recovery as it shifts its strategy heading into the new year.
The movie rental company's stock took a beating in 2007 as it and its chief rival, Netflix Inc., entered into a pricing war. For the trailing 52 weeks, Blockbuster shares have fallen nearly 20%, according to SNL Kagan data, while Netflix shares have gained 6.5% for the same measured period.
On Wednesday, Dec. 26, Blockbuster shares received a modest boost, while other media stocks ended mixed: As of 4:12 p.m. ET, the SNL Media & Entertainment Index had fallen 0.28% to 105.66, while the SNL New Media Index had gained 1.32% to 397.06. Blockbuster shares closed up 3.98% to $4.18.
The SNL Communications Index rose 0.97% to 154.01.
The broader markets trended slightly higher Wednesday as the Dow Jones Industrial Average inched up 0.02% to 13,551.69 and the NASDAQ Composite Index improved 0.40% to 2,724.41.
Following a recent meeting with management, Sterne Agee analyst Arvind Bhatia maintained his recommendation of buying Blockbuster stock and reiterated his 12-month price target of $5.75 per share.
In a Dec. 26...