UPDATE: Edward Jones Downgrades Netflix (NFLX) to Hold
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Edward Jones analyst David Heger downgraded Netflix (NASDAQ: NFLX) from Buy to Hold.
The analyst comments "We are downgrading our rating on shares of Netflix to a Hold from a Buy due to decreased expectations for future growth. We think that results will be impacted by market saturation in the U.S, increased competition, and post-pandemic subscriber losses. Though growth is slowing, we believe Netflix can add subscribers in international markets, and we think that its plans to offer a lower-priced service, subsidized with advertising, will help it to grow in these markets. Netflix is still well-positioned in the streaming business due its large size and significant content investment, but we expect that it could take several quarters to implement its ad-supported offering, and expenses will increase to support these offerings. Shares have Above Average price movements, reflecting price volatility above the market."
Shares of Netflix closed at $226.19 yesterday.
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