Shares of Netflix NFLX fell 1.23 percent to Sell from Hold, with analyst Matthew Harrigan stating he “prematurely” elevated the stock to Hold after the release of its fourth-quarter results and installed a new $157 price objective, according to the Wall Street Journal.
Netflix’s (NYSE: NFLX) shares were down 1.84 percent before the market opened on Tuesday.
During Netflix’s rise and subsequent decline, Harrigan was one of the few analysts to maintain a Sell rating. In January, he rated the stock as a Hold.
Harrigan said he was “not perturbed” by Netflix’s hiring of Ken Barker as its senior accounting officer, reporting to CFO Spencer Neumann, on Monday. As a result, the stock might be hurt if growth in members and operational profit margins “slow out in tandem,” which would be bad news for the company’s stock price.
According to Harrigan, Netflix’s “continuing negative Netflix news deluge… about member losses and even Prince Harry and Meghan, a modest growth albatross” is a threat to growth.
Wall Street is waiting to see how Netflix responds after it reported its first quarterly subscriber decline in more than a decade in April, and the analyst at Benchmark is not alone. According to Goldman Sachs analysts, Netflix’s stock was lowered last week due to worries about weaker consumer spending and increased competition from Amazon (AMZN) and Walt Disney Co. (DIS).
The post Longtime Bear Admits His January Elevation To Neutral Was A Mistake As Wall Street Cools On The Streaming Godfather Netflix. appeared first on Best Stocks.
