They reduced their rating on the shares to equal weight from overweight, while halving their target price to $300. “From here, we see the catalyst path as being as clear as mud.” “Said investments change the historically simple story, cloud the return profile, and cause Netflix to lose its shine, in our view,” they wrote. Wells Fargo analysts said that Netflix shares look less attractive now that the company is “firmly on the defensive,” and they argued that the streaming giant’s narrative “is dunzo for now.”Īs Netflix plans to increase its emphasis on programming, take aim at password-sharing, and explore the introduction of advertising, the Wells Fargo team sees the company in a “reactionary” position. See also: Netflix stock’s 2nd record plunge in 3 months set wipe out more than $40 billion in market cap The Pivotal analysts lowered their rating to sell from buy and slashed their price target by more than half, to $235 from $550. the current great consumer experience and introduces ad volatility to results.” The analysts thought that Netflix could boost average revenue per user by cracking down on password-sharing, though they warned that such a move could also cause “materially higher churn.” Additionally, the Pivotal team was unconvinced about the merits of a potential advertising tier on Netflix, writing that “it cheapens the brand and the product vs. Pivotal Research analysts slapped a double downgrade on Netflix, cutting their rating on the shares to sell and taking a mixed view on some of the company’s recently discussed efforts meant to jolt momentum. They cut their rating on the shares to neutral from buy, and lowered their price target to $355 from $575 a share. UBS analysts warned that increased competition, macroeconomic pressures, and a saturated market could further impact Netflix’s ability to boost its subscriber count. Though a wave of analysts downgraded Netflix shares after a downbeat report three months back, more piled on after Tuesday’s earnings. Market Pulse: Netflix bonds hit after earnings report shows subscriber losses ![]() Read: Netflix eyes ad-supported tier and targets password-sharing as subscriber total shrinks, stock plunges ![]() Netflix’s Wednesday loss of market cap is more twice the value of Paramount Global The market value could change when Netflix gives an updated share count in its first-quarter 10-Q. Netflix avoided closing with a market value below $100 billion, but it still shed $54.3 billion in market capitalization on the day, according to Dow Jones Market Data, with calculations based on the share count disclosed in its January 10-K filing. CNBC's Lora Kolodny contributed to this report.The stock recorded its steepest single-day percentage decline since it fell a record 40.9% on Oct. Netflix shares are up nearly 23% year to date but are still around 16% below their 2021 high. Though Hastings remains the executive chairman of Netflix, the company has no obligation to disclose the reason behind the gift or the beneficiary. Those sales have netted him around $2 billion. ![]() Given his long tenure at Netflix, he also has several tranches of options that he has historically sold at a steady clip, VerityData's Silverman told CNBC. Hastings retains just under three million Netflix shares with a value of around $1.7 billion. In 2020, he announced he would donate $120 million to two historically Black colleges and universities and the United Negro College Fund. Hastings has several philanthropic pursuits. "There's always a possibility that they're shifting the stock somewhere else, for example to a trust where they don't have control or are not a beneficiary." "We don't know what it could be, whether it's a charity or multiple charities," VerityData Vice President Ben Silverman told CNBC. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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