Netflix: shares fall as results underwhelm investors
(CercleFinance.com) - Shares in Netflix, the video-on-demand platform behind TV hits such as "Stranger Things" and "Narcos", fell on Tuesday after quarterly results and outlook disappointed investors.
"After four straight quarters of soundly beating subscriber guidance that resulted in the stock more than doubling, Netflix missed its subscriber guidance modestly in the second quarter", said analysts at Canaccord Genuity.
Late on Monday, Netflix reported net subscriber additions of 5.1 million for the second quarter, versus an estimate of 6.2 million.
Furthermore, the group forecasted 5 million global net additions for the third quarter, well below a consensus of close to 6.4 million.
Analysts wonder if the disappointment is just a "one-off" or "the start of a trend”.
Canaccord - which keeps a "buy" rating on the stock - thinks the issue is just "temporary," but lowers its price target on the share to 450 dollars from 500 dollars.
Credit Suisse also cuts its target on the stock, to 470 dollars from 500 dollars, while maintaining an "outperform" rating.
"We would suggest any pullback is an opportunity, given Netflix's clear leadership in the fast growing global streaming market”, the brokerage firm wrote in a note.
Investors did not seem to agree. In early morning trading, Netflix shares were trading 12% lower at 353.8 dollars.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
"After four straight quarters of soundly beating subscriber guidance that resulted in the stock more than doubling, Netflix missed its subscriber guidance modestly in the second quarter", said analysts at Canaccord Genuity.
Late on Monday, Netflix reported net subscriber additions of 5.1 million for the second quarter, versus an estimate of 6.2 million.
Furthermore, the group forecasted 5 million global net additions for the third quarter, well below a consensus of close to 6.4 million.
Analysts wonder if the disappointment is just a "one-off" or "the start of a trend”.
Canaccord - which keeps a "buy" rating on the stock - thinks the issue is just "temporary," but lowers its price target on the share to 450 dollars from 500 dollars.
Credit Suisse also cuts its target on the stock, to 470 dollars from 500 dollars, while maintaining an "outperform" rating.
"We would suggest any pullback is an opportunity, given Netflix's clear leadership in the fast growing global streaming market”, the brokerage firm wrote in a note.
Investors did not seem to agree. In early morning trading, Netflix shares were trading 12% lower at 353.8 dollars.
Copyright (c) 2018 CercleFinance.com. All rights reserved.