Barron's Says the Shorts May Be Right on Netflix (NFLX)
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Shares of Netflix (Nasdaq: NFLX) are seeing pressure this morning following a cautious Barron's article this weekend saying the shorts may have it right. "It may well be time for investors to hit Eject," the article states.
Barron's highlighted that studio executives have been slamming Netflix in the media, suggesting they should soon ratchet up prices. In addition, short sellers have been pounding the table, which triggered an unusual public response from CEO Reed Hastings addressing them.
Netflix will also be facing more competition and has far less top-selling titles than rivals, the article notes.
Barron's also notes that in addition to insider selling from recently resigned-CFO Barry McCarthy, others ares selling as well. "Based on filings in November and early December, insiders and non-officer directors of Netflix now hold about 20% fewer shares than they did in March," the article stated. CEO Hastings accounted for a bulk of the selling.
A wild card could result from a little-noticed federal-court decision in September. The ruling could allow studios to license their wares to rental outfits rather than sell them, the article noted. This could mean stricter limits on the how and when the movies are rented.
Shares of Netflix last traded at $178.89, down 2.5 percent.
Barron's highlighted that studio executives have been slamming Netflix in the media, suggesting they should soon ratchet up prices. In addition, short sellers have been pounding the table, which triggered an unusual public response from CEO Reed Hastings addressing them.
Netflix will also be facing more competition and has far less top-selling titles than rivals, the article notes.
Barron's also notes that in addition to insider selling from recently resigned-CFO Barry McCarthy, others ares selling as well. "Based on filings in November and early December, insiders and non-officer directors of Netflix now hold about 20% fewer shares than they did in March," the article stated. CEO Hastings accounted for a bulk of the selling.
A wild card could result from a little-noticed federal-court decision in September. The ruling could allow studios to license their wares to rental outfits rather than sell them, the article noted. This could mean stricter limits on the how and when the movies are rented.
Shares of Netflix last traded at $178.89, down 2.5 percent.
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