- A flood of analyst revisions is coming in on Netflix (NASDAQ:NFLX) after the company posted subscriber growth below expectations for Q2 and guided Q3 sub adds below consensus.
- Firms pulling back on Netflix include Deutsche Bank (DE:DBKGn) with a cut to Hold from Buy on its view the streamer's subscriber growth in global markets is tricky to model. Meanwhile, B. Riley FBR warns that Netflix has hit a brick wall. "What I think we have to watch out for is maybe the kind of high-wire act that these guys have been doing ... quarter after quarter after quarter can't continue forever," notes analyst Barton Crockett.
- On the other side of the ledger, BMO Capital (Outperform, $400 PT) and Stifel (Buy, $406 PT) are taking advantage of the dip to recommend shares again. Netflix is also still rated as Highly Attractive by GBH Insights' Daniel Ives. "In uber growth stories, especially in technology, from Apple (NASDAQ:AAPL) to Amazon (NASDAQ:AMZN) to Netflix, you’re going to run into these one- or two-quarter issues when they’re white-knuckle periods in the very near-term," he advises. "While the knee jerk reaction will clearly be negative from the Street’s perspective, we would be buyers of Netflix on this weakness," he adds in backing a $500 PT.
- Shares of Netflix are down 12.95% in premarket trading to $348.61. Even with the post-earnings decline, Netflix has doubled in price in 2018.
- Previously: Netflix subscriber growth falls short (July 16)
- Now read: Netflix's Sell-Off Starts
Original article