Netflix Downgraded To Hold As U.S. Growth Slows

Netflix was downgraded to hold from buy at Stifel on Tuesday with a $380 price target. Shares of the movie streamer slumped 1% to $353 in premarket trade. Stifel analyst Benjamin Mogil said he remains positive on Netflix's long-term international opportunity, but believes a near-term slowdown in domestic subscriber growth could be an issue. The company last month said it added 980,000 new U.S. customers during the third quarter, down from 1.29 million in the year-earlier period. Mogil believes Netflix's shares are more attractive in the low-$300 range until more clarity is provided regarding the trajectory of U.S. subscriber growth.This comes as Netflix continues to expand internationally. Its service is now available in 50 countries, and Netflix plans to move into Australia in March.

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