Yahoo Finance Netflix Falls 3% as Wall Street Divided on Future Growth
Investing.com - Netflix fell on Friday, continuing to pare gains as its blowout earnings report earlier this week was overshadowed by valuation concerns amid a downbeat report from Keybanc.
KeyBanc Capital Markets' Andy Hargreaves downgraded Netflix from overweight to sector weight earlier this week, citing concerns over limited investment efficiency, margin expansion and ancillary opportunities over the next year. The bank's bearish assessment of Netflix arrived after the streaming giant added 7 million new streaming subscribers in the third quarter, a third more than Wall Street had expected.
Still, others on Wall Street continued to contend further growth lies ahead for Netflix.
"While bears will point to lower fourth-quarter margin guidance, we believe Netflix continues to build a bigger moat as the majority of content spend is through its internal studio, which protects the company from media consolidation and forthcoming OTT services," Oppenheimer analyst Jason Helfstein said in a note earlier this week.
Oppenheimer has raised its price target on Netflix to $410 from $370.
(NASDAQ:NFLX) fell by 3.36% to trade at $335.06 by 14:07 (18:07 GMT) on Friday on the NASDAQ exchange.
The volume of Netflix shares traded since the start of the session was 10.37 million. Netflix has traded in a range of $334.57 to $355.80 on the day.
The stock has traded at $380.0000 at its highest and $315.8100 at its lowest during the past seven days.
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