More Tailwinds for Netflix

Netflix (NFLX Quote) shares got a boost Monday as Wall Street speculated that a key competitor is about to enact a price increase.

Thomas Weisel Partners analyst Gordon Hodges said in a research note that shares of the online DVD rental company could see upside if Blockbuster (BBI Quote) is forced to raise the price on its DVD-by-mail service.

"We believe the competitive environment may improve faster than earlier expected as Blockbuster appears to be tinkering with pricing and already implementing price increases through a variety of offers," Hodges wrote. His firm makes a market in Netflix shares and has an investment banking relationship with the company. ...