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Netflix Shares Underperforming Today, Could Be Related To Concerning Comments From Bearish Bernstein Analyst

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Traders have been fading the morning rally in shares of Netflix (NASDAQ: NFLX) Monday. Some traders in the name are attributing the weakness to some comments from Bernstein's Carlos Kirjner, a bear in the stock as of June 25th.

After opening at $310, stock has now lost all of the gains and is trading around $305.15, down around $0.50 for the session. The NASDAQ is trading up more than 13 points, or around a third of a percent.

In the note, Kirjner said, "We believe Netflix may reach 40-45 million domestic subscribers in the fullness of time as its addressable market is limited by broadband penetration and quality and by the availability of Internet connected TVs or "bridge devices" such as game consoles." The analyst had a similar sentiment on Netflix's international opportunities.

Kirjner highlighted, "the current valuation implies a domestic subscriber base well above our 40-45M estimate and/or a higher monthly fee under the assumption that the service is or will be largely price-inelastic."

Bernstein's Kirjner maintains an Underperform rating and $180 price target. The analyst's price target represents potential downside of more than 40 percent from where Netflix shares are currently trading.

BENZINGA NOTE: Kirjner has never been a bull on shares of Netflix. The analyst initiated coverage on Netflix at the beginning of November in 2011 with a Market Perform rating.

Latest Ratings for NFLX

DateFirmActionFromTo
Sep 2014BarclaysUpgradesUnderperformEqual-weight
Sep 2014Canaccord GenuityInitiates Coverage onBuy
Sep 2014SunTrust Robinson HumphreyInitiates Coverage onNeutral

View More Analyst Ratings for NFLX
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