Scalper1 News
Internet television network Netflix ( NFLX ) has lost 18% of its value since reporting Q1 earnings and offering weak subscriber guidance for Q2. But RBC analyst Mark Mahaney says concerns about Netflix’s prospects are overblown. In a research report Sunday, Mahaney reiterated his outperform rating on Netflix stock, with a price target of 140. Netflix stock was up more than 2%, near 90, in morning trading on the stock market today . Shares have been falling, though, and it’s on IBD Swing Trader as a short-sale possibility. On Friday, Dan Nathan, founder of RiskReversal.com, told CNBC that options volume has grown increasingly bearish on Netflix, pointing to negative sentiment on Wall Street. Netflix has an IBD Accumulation/Distribution Rating of D+, indicating more institutional selling than buying. But the market’s concerns about Netflix’s profitability, international growth and competition are “overstated,” Mahaney said. “We still think NFLX can double in three years.” Netflix has proven profitability, a universal value proposition, material scale advantages and an excellent management team, Mahaney said. Netflix handily beat subscriber goals in the first quarter, but its target for new international subscribers in Q2 of 2 million was almost 1 million below Wall Street estimates. In the U.S., Netflix expects to add just 500,000 new subscribers as price hikes kick in for existing subscribers, increasing member churn. Meanwhile, Netflix is facing increased competition at home and abroad. In the U.S., Amazon.com ( AMZN ) and Hulu are ramping up their original and exclusive content offerings. In the U.K., the BBC is working on an online streaming service with the working name “Britflix” that would compete with the likes of Netflix, according to media reports. RELATED: Netflix Stock Gets Belated Price-Target Cut From UBS 5 Key Takeaways From Netflix’s Troubling Q1 Earnings Report Amazon Goes Head-To-Head With Netflix In Streaming Video Scalper1 News
Scalper1 News