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.
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%.