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The streaming giant’s new movie “The Irishman” was watched by 26.4 million households during its first week, chief content officer Ted Sarandos said at an industry conference. The 3.5-hour epic nabbed 17 Golden Globe nominations while Netflix as a whole secured 34.
That wasn’t enough to keep Wall Street happy, which downgraded Netflix on Tuesday for the fourth time in two months.
Shares slipped over 3 percent, while the broader markets were little changed.
“We project Netflix will lose 4mm US subs in 2020 at its premium-priced tier of $9-$16/month,” Needham and Company analyst Laura Martin wrote while downgrading shares to “underperform."
“We believe Netflix must add a second, lower-priced, service to compete with Disney+, Apple+, Hulu, CBS All Access and Peacock, each of which have $5-$7/month choices" she added.
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Martin said U.S. subscribers generate about three times the profit as international customers.
Also last week, Citi analyst Jason Bazinet assumed coverage of Netflix with a “neutral” rating and $325 price target, warning that the Wall Street consensus was “too high.” He cited a lack of operating leverage.
Wall Street analysts surveyed by Refinitiv have a 12-month price target of $361 a share. Twenty-seven of the 44 analysts surveyed say “buy” while just five suggest “sell.”
Netflix shares have gained 13 percent this year, lagging the S&P 500’s 25 percent gain.