Netflix's Stock Slumps After Downgrade At Evercore ISI

Netflix Inc.'s stock slumped 1.7% in premarket trade Monday, after Evercore ISI downgraded the streaming video service as intensifying competition will necessitate increased investment with uncertain returns. Analyst Ken Sena cut his rating to sell, after being at hold for the last five months. He slashed his stock price target to $380, which is 13% below Friday's closing price of $438.40, from $450. "In the context of increasing competition among existing and emerging distributors, and with content providers becoming better equipped to leverage these newer channels through [over-the-top] offerings of their own, we view shares as unattractive," Sena wrote in a note to clients. Netfix's stock has surged 28% year to date, compared with a 0.3% decline in the S&P 500.