Reality is closing in on Netflix. With the stock (NFLX) down 30% over the past three months, poor second-quarter results and signs that third-quarter subscriber numbers (which the company reports on Oct. 16) might be below expectations, the market is no longer buying CEO Reed Hasting’s previous ridiculous claims like that Fortnite and YouTube are Netflix’s primary competitors. While the “sell side” remains bullish, with 70% of Wall Street analysts tracked by FactSet calling Netflix a buy, independent investors are increasingly skeptical of the company’s growth story. Read More...
Netflix stock has fallen 30% in 3 months but its valuation is still irrational
Reality is closing in on Netflix. With the stock (NFLX) down 30% over the past three months, poor second-quarter results and signs that third-quarter subscriber numbers (which the company reports on Oct. 16) might be below expectations, the market is no longer buying CEO Reed Hasting’s previous ridiculous claims like that Fortnite and YouTube are Netflix’s primary competitors. While the “sell side” remains bullish, with 70% of Wall Street analysts tracked by FactSet calling Netflix a buy, independent investors are increasingly skeptical of the company’s growth story.
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