UPDATE: Piper Jaffray Downgrades Netflix to Neutral on Investor Sentiment

Piper Jaffray reduced its rating on Netflix NFLX from Overweight to Neutral and lowered its price target from $130 to $74. Piper Jaffray noted, "We continue to believe the LT strategy of growing the WW footprint to maintain domination in subscription online video is sound, but we expect investors will lack the patience required to own the stock for multiple years to see this play out and result in sustainable profitability. … We maintain a positive bias on the Netflix strategy, but expect the stock to trade sideways until we get closer to sustainable profitability." Netflix closed at $80.39 on Tuesday.