We believe Netflix and Redbox are capturing market share from Blockbuster at an accelerated rate, Wedbush Morgan analyst Michael Pachter wrote in a note to investors. We must question how long the company can continue as a going concern given its rapidly deteriorating performance.
Redbox, a provider of popular rental kiosks, is owned by Coinstar Inc .
Blockbuster shares fell 31.51 percent, or 23 cents, to 50 cents a share on Thursday on the New York Stock Exchange.
The sell-off followed Blockbuster's announcement on Wednesday that its fourth-quarter and fiscal 2009 earnings would be sharply lower than expected due to weak holiday and international sales.
It expects adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $195 million to $205 million for the year that ended on January 3, compared with its earlier forecast of $270 million to $290 million.
(Reporting by Sue Zeidler. Editing by Robert MacMillan)