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."
"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.
- 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.
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