Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Netflix Declines On Stock Downgrade

Published 03/14/2018, 09:05 AM
Updated 03/09/2019, 08:30 AM

Shares of Netflix Inc (NASDAQ:NFLX) are expected to go down further in the coming trading sessions. The stock of the company has lost more than 3.1% since the trading session last Monday after the streaming services giant has been given a short-sell rating by an analyst.

Back to $300/Share

According to Andrew Left of Citron Research, the market capitalization of the company has grown to $17 billion since the beginning of the month with short interest level close to touching a ten-year low.

Left which is known as a short seller stated in his tweet that the stock can be seen back down to trade at $300 per share representing a downside of 9.5% from the closing price of $331.44 last Friday.

During the past week, shares of Netflix were downgraded to hold by other analysts due to its buy rating which has already lasted for more than three years. According to the analyst, the stock has exceeded the short-term fundamentals leading to only three sell ratings out of 45 analysts covering the stock.

Netflix shares have been projected to rise by as much as $400 per share over the past couple of months with most forecasts being bullish. This was due to the continuous surge in the subscriber growth of the company as well as a growing patronage for its originally produced programs.

However, other analysts have now noted of the growing competition from giant tech companies such as Amazon (NASDAQ:AMZN) and entertainment companies such as Time Warner's (NYSE:TWX) HBO and Walt Disney Company (NYSE:DIS). Last year, Walt Disney announced that it would not be renewing its agreement with Netflix and will be pulling out all of its content from the streaming service after the contract expires. Disney is expected to come up with its own streaming service.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Netflix Stock Movement

Following Left’s tweet, shares of Netflix lost around 3.1% during Monday’s trading session. However, Netflix shares declined further by as much as 3.8% after Eddy Cue, head of Apple Inc (NASDAQ:AAPL) services made a comment that suggested during the South by Southwest conference that the company is not interested in making an acquisition.

Netflix shares have gained around 66% for the year and are still one of the top performing stocks in the S&P 500. The stock has previously touched a 52-week high last week on reports of former U.S. President Barack Obama in talks with the company for a possible content deal. The stock has then traded around the $326.61 level and was up by 69%.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.