Goldman Sachs Says Netflix (NFLX) News is a Positive, Management 'Finally' Listening to Customers
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Rating Summary:
57 Buy, 26 Hold, 2 Sell
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Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
57 Buy, 26 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Goldman Sachs said news that Netflix (NASDAQ: NFLX) will abounded its Qwikster plans- that would have split DVD from its streaming website - is a positive.
The firm cited better visibility into 4Q subscriber metrics, as the move risked the company losing a majority of the 12 million hybrid subscribers. It also shows that management is "finally listening to its customers" and working to fix its relationship with customers.
The analyst does not believe that Netflix made this move because of additional churn in the last two weeks of the third quarter. Even if their was additional churn in the quarter, "it will be more than made up for by the number of hybrid subs that will now stay with the service," the firm notes.
Goldman is retaining their Buy rating on Netflix.
"While today's retreat from separating the websites shows how little testing had gone into the launch of Qwikster, we believe that the more humbled management team will be more thoughtful going forward," the analyst commented.
For more ratings news on Netflix click here and for the rating history of Netflix click here.
Shares of Netflix closed at $117.21 yesterday.
The firm cited better visibility into 4Q subscriber metrics, as the move risked the company losing a majority of the 12 million hybrid subscribers. It also shows that management is "finally listening to its customers" and working to fix its relationship with customers.
The analyst does not believe that Netflix made this move because of additional churn in the last two weeks of the third quarter. Even if their was additional churn in the quarter, "it will be more than made up for by the number of hybrid subs that will now stay with the service," the firm notes.
Goldman is retaining their Buy rating on Netflix.
"While today's retreat from separating the websites shows how little testing had gone into the launch of Qwikster, we believe that the more humbled management team will be more thoughtful going forward," the analyst commented.
For more ratings news on Netflix click here and for the rating history of Netflix click here.
Shares of Netflix closed at $117.21 yesterday.
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