Netflix stock drops after Needham turns bearish, says company needs to add an ad tier

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Netflix stock drops after Needham turns bearish, says company needs to add an ad tier
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Netflix downgraded by Needham, which advocates ad-supported tier

Shares of Netflix Inc.

are off 2.4% in premarket trading after Needham analyst Laura Martin downgraded the stock to underperform from hold, writing that she expects the streaming giant to shed 4 million U.S. subscribers in 2020 due to the high price of its service relative to other streaming offerings. "We believe Netflix must add a second, lower priced, service to compete with Disney+, Apple+, Hulu, CBS All Access and Peacock, each of which have $5-$7/month choices," Martin wrote.

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