Netflix Stock Gets Downgrade, Analysts Cut Price Targets After Third-Quarter Subscriber, Earnings Report
Macquarie Capital's Tim Nollen lowers his stock rating from"outperform" to"neutral" following the streaming giant's third-quarter subscriber and financial update, highlighting that"competition is coming."Netflix's third-quarter earnings report
"Growth in Netflix’s key metric, subs, is slowing in the U.S., but still strong abroad," Nollen wrote in his report. "Quality of earnings is rising, but so too [are] competition and content cost." But he emphasized: "It’s neither inflecting up nor down, hence we turn neutral." Guggenheim Securities Michael Morris dropped his price target on Netflix by $20 to $400, while also keeping his "buy" rating on the stock. "We are confident in the subscriber and economic growth potential of the business over the long term; however, we do expect investors to remain cautious due to the overhang from competition," he wrote in his report.
"Netflix delivered positively on all things important to us," he wrote. "International paid net adds were an all-time third-quarter high, beat the guide, beat our estimate, beat consensus, grew 23 percent year-over-year... 'SVOD competition' is still years away in most markets, and when it comes, we think it will do more to grow the market than steal share from Netflix.
"The company faces a steep uphill climb to replace the content it is slated to lose over the next two years," Pachter wrote. "We estimate that by the end of 2021 Netflix will have virtually no content from Disney, Fox, Warner Bros. or NBCUniversal, and we think its efforts to replace that content with originals will only partially succeed."
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Netflix misses on subscribers, but stock is upNetflix reported in its third quarter earnings that it added 6.8 million new subscribers — just a tick under the 7 million it was projecting. It now has 158.3 million subscribers globally. The company's stock went up as much as 10% in after hours trading.
Leer más »
Gene Munster: Netflix is a difficult stock to own even after positive earnings'The stock reaction would suggest a higher grade, but ultimately, this trend is there is some cautionary tales here,' Loup Ventures' Gene Munster says.
Leer más »
Charles Schwab stock rebounds after reporting record client assets amid shift to zero commissionsBrokerage firm Charles Schwab said its client assets reached a record high of $3.77 trillion on Tuesday, in its first earnings report since dropping commission fees.
Leer más »
Roku stock jumps 10% as company adds Apple TV appShares of Roku jumped more than 10% on Tuesday after the company announced that the Apple TV app is now available on its platform. Roku users are now able to access the app through the Roku Channel Store.
Leer más »
United Airlines stock higher after company raises guidance, tops profit viewsShares of United Airlines Holdings Inc. rose 3% in the extended session Tuesday after the airline reported an adjusted third-quarter profit above Wall Street...
Leer más »