The Zacks Analyst Blog Highlights: Verizon Communications, Outerwall, Google, Netflix and Amazon

For Immediate Release

Chicago, IL – October 08, 2014 – 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 the Verizon Communications Inc. (VZ-Free Report), Outerwall Inc. (OUTR-Free Report), Google Inc. (GOOGL-Free Report), Netflix Inc. (NFLX-Free Report) and Amazon (AMZN-Free Report).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Tuesday’s Analyst Blog:

Verizon, Outerwall Shutter Redbox Instant

Verizon Communications Inc. (VZ-Free Report) and Outerwall Inc. (OUTR-Free Report) have decided to officially shut down its video streaming business venture, Redbox Instant, effective today, Oct 7.

While Outerwall’s Redbox Instant offered movies to rent, Verizon’s widespread U.S. presence helped popularize the service. Lately, video streaming services have gained considerable popularity with increased smartphone and tablet usage along with higher rollout of 4G LTE technology. Thus, to capitalize on the opportunity, the companies had teamed up in Mar 2013.

Despite the successful venture, the Redbox Instant service was hurt by competition from low-cost video streaming companies like Google Inc.’s (GOOGL-Free Report) Youtube and Hulu. Netflix Inc.’s (NFLX-Free Report) extensive movie and TV show collection coupled with ultra HD video offerings also posed significant challenges. As per reports presented by Sandvine, Netflix customers account for nearly 33% Internet streaming traffic in North America followed by Youtube, Amazon (AMZN-Free Report) videos and Hulu.

In order to gain market traction, the service had been offered at reasonable video streaming rates between $8 and $9. However, the company continues to face stiff revenue fall and the service witnessed a 9.3% year-over-year drop in the second quarter of 2014.

The partnership also faced a number of credit card fraud cases where payments were made using fake credit cards. To deal with this, the company stopped subscribing new customers earlier this year. Moreover, it was not possible for new or existing users to add or change payment information on the website.

Such adverse aspects have impeded subscriber and revenue growth substantially. Hence, to cut down operating costs and offset other detrimental factors, both the companies have decided on dropping the service.

Verizon currently carries a Zacks Rank #2 (Buy).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

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