UPDATE COLOR: Wedbush Downgrades Netflix, Lowers PT To $110

Wedbush downgraded its Netflix

rating from Outperform to Neutral and lowered its Netflix price target from $166 to $110 in a research report published today, with commentary on today's company announcement by Netflix CEO Reed Hastings In the report, Wedbush states, "We believe today's announcement signals an end to the possibility of Amazon.com acquiring Netflix's streaming business. In a September 22 note, we speculated that Netflix had separated into two companies to allow Amazon to purchase the streaming business without establishing physical nexus in multiple states. By avoiding physical nexus, Amazon would not have to collect sales tax." Later in the report, Wedbush notes, "We believe Netflix's precipitous share price drop and additional customer attrition caused Amazon to back away from a potential deal." Shares of Netflix were trading at $121.34 at the time of posting, up 3.53% from Friday's market close.