Market Overview

Big Banks Cut Price Targets Following Netflix's Q2 Results

Big Banks Cut Price Targets Following Netflix's Q2 Results

Shares of Netflix, Inc. (NASDAQ: NFLX) were under heavy selling pressure after the company reported concerning subscriber metrics in its second-quarter earnings print.

Shares of Netflix were trading lower by around 15 percent Monday afternoon and showed little signs of rebounding ahead of Tuesday's market open, as the stock was sitting at $86.45 — down nearly 13 percent from Monday's close of $98.81.

"We are growing, but not as fast as we would like or have been," the company said in its earnings release, which triggered the alarm bells.

Mark Cuban Remains Bullish

Despite the near-15 percent decline in Netflix's stock, Mark Cuban remains positive on the video streaming company.

Speaking to Benzinga, the billionaire entrepreneur and investor said in an e-mail that he isn't "worried" about quarter-to-quarter fluctuations. In fact, he even suggested that Netflix is "still in start up mode which is exactly where they should be."

Related Link: Citi Says Netflix Q2 Result, Guidance Missed Even The Most Conservative Forecasts

"They continue to dominate the content and consumer delivery for over the top," he also said.

Cuban further suggested that he will only sell Netflix's stock when the company manages its business "for earnings."

Wall Street Disagrees

Major Wall Street research firms were quick to slash their price target on Netflix's stock following Netflix's earnings print — with one notable exception, as analysts at Credit Suisse bucked the trend and raised their price target to $122 from a previous $119.

drk.jpg (click to enlarge)

  • Morgan Stanley lowered its price target to $110 from a previous $125.
  • Citi Research lowered its price target to $92 from a previous $106.
  • Goldman Sachs lowered its price target to $115 from a previous $120.
  • JPMorgan lowered their its target to $116 from a previous $125.

Did you like this article? Could it have been improved? Please email with the story link to let us know!

Latest Ratings for NFLX

Jul 2019MaintainsBuy
Jul 2019ReiteratesOutperform
Jul 2019MaintainsUnderperform

View More Analyst Ratings for NFLX
View the Latest Analyst Ratings

Posted-In: Analyst Color Earnings News Guidance Price Target Analyst Ratings Movers Tech Best of Benzinga


Related Articles (NFLX)

View Comments and Join the Discussion!

Mobileye Remains Barclays' Top Pick Ahead Of Q2 Earnings

Corn Futures Move Down