Why Michael Pachter Likes Netflix But Has A Sell Rating

Wedbush Equity Analyst Michael Pachter discussed his view of Netflix, Inc.

on the show. Pachter explained that he likes the company but maintained a Sell rating on the stock. "There's no question that [Netflix] is a well-managed company, and no question that their product is a great value so consumers love them." Pachter's sell rating was because "investors have given Netflix way too much credit for their ability to thrive in that future world where we all ‘cut the cord' and consume content" over the internet. The analyst felt the company would continue to be profitable, however, Pachter felt that the market had "discounted too deeply the potential for competition" as well as the desire for content owners to "extract as much economic rent [as possible] from providers like Netflix." Pachter thought the company would end up with a smaller footprint and fewer subscribers as it is forced to charge more for the service. Netflix, Inc. recently traded at $420.86, down 0.21 percent. To hear what else Michael Pachter had to say about Nerflix, listen to the show here: