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Netflix shares tumble as Goldman downgrades on economic slowdown
By Arghyadeep Dutta - Jun 10, 2022, 03:15 PM ET
Last Updated - Mar 04, 2024, 12:02 PM EST
Netflix is planning cheaper subscription that includes advertising
• Of 48 analysts covering Netflix, 12 rate “buy” or higher, 31 “hold”, and five recommend “sell” or “strong sell”
• Netflix is planning cheaper subscription that includes advertising
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Netflix Inc (NASDAQ: NFLX) shares fell more than 6% on Friday after Goldman Sachs downgraded the company, as the streaming giant is facing a slowdown in consumer spending and tough competition from Amazon.com Inc (NASDAQ: AMZN) and Walt Disney Co (NYSE: DIS).
Goldman downgraded the stock to “sell” from “neutral” and slashed its price target to $186 from $265, the lowest among analysts and brokerage firms covering the stock.
Of 48 analysts covering Netflix, 12 rate “buy” or higher, 31 “hold”, and five recommend “sell” or “strong sell”.
The median stock price target is $297.50.
Shares of Netflix dropped to $180.86 on Friday.
In April, the shares plunged nearly 40% after Netflix reported that it lost 200,000 customers in the first quarter — its first drop in subscribers in a decade, resulting in a wave of downgrades from Wall Street analysts on fears over long-term growth potential.
The streaming giant said suspending its services in Russia after the Ukraine invasion also affected its customer base.
Moreover, rising food and gas prices left people with little to spend on entertainment.
Netflix is planning a cheaper subscription that includes advertising, following the success of similar offerings from rivals HBO Max and Disney+.
Picture Credit: CNET
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