After One Day Reprieve, Netflix (NFLX) Back In the Red
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After seeing a nice bounce Monday, amid a positive weekend Barron's piece and an upgrade, Netflix, Inc. (Nasdaq: NFLX) is back to its losing ways Tuesday.
Shares of the embattled DVD and Internet movie service are down 5 percent in early going to $66.44.
This morning, Canaccord Genuity reiterated its Sell rating on Netflix and cut its price from $60 to $57.
"While we view the announcement as positive as it fully funds the business (for now) and reduces future dilution risk, the larger than expected raise and management’s lowered guidance (implied in S-3) suggest near-term pressure will continue," analyst Jeff Rath said. "We continue to believe that NFLX faces numerous challenges, including subscriber losses, rising content costs and an increased competitive landscape."
This weekend's Barron's piece suggested that most of the downside is already priced in and the valuation is now attractive.
Netflix bounced over 9%, from $63.86 to $69.95, on Monday. Today the stock is down 5.5% to $66.08.
Shares of the embattled DVD and Internet movie service are down 5 percent in early going to $66.44.
This morning, Canaccord Genuity reiterated its Sell rating on Netflix and cut its price from $60 to $57.
"While we view the announcement as positive as it fully funds the business (for now) and reduces future dilution risk, the larger than expected raise and management’s lowered guidance (implied in S-3) suggest near-term pressure will continue," analyst Jeff Rath said. "We continue to believe that NFLX faces numerous challenges, including subscriber losses, rising content costs and an increased competitive landscape."
This weekend's Barron's piece suggested that most of the downside is already priced in and the valuation is now attractive.
Netflix bounced over 9%, from $63.86 to $69.95, on Monday. Today the stock is down 5.5% to $66.08.
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