Market Overview

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

Related NFLX
Pay-TV Subscriber Loss Rises In Q3, Cord Cutting Still A Woe
Liberty Media's John Malone: Amazon Could Overtake Netflix
What Stocks Will You Buy When The Market Crashes This Year? (Seeking Alpha)

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

Oct 2017Loop CapitalMaintainsBuy
Oct 2017BairdMaintainsNeutral
Oct 2017CitigroupMaintainsNeutral

View More Analyst Ratings for NFLX
View the Latest Analyst Ratings

Posted-In: Analyst Color News Analyst Ratings


Related Articles (NFLX)

View Comments and Join the Discussion!

Partner Center