Shares of Netflix Inc. extended on Tuesday their recent sharp selloff, after Matthew Harrigan -analyst- turned bearish on the streaming giant, and set a new price target that was the lowest on Wall Street.
The stock NFLX, -1.27% fell 1.8% in morning trading, and has now tumbled 17.9% in the middle of a four-day losing streak. The stock was trading just 0.1% above the May 11 five-year closing low of $166.37.
Harrigan said he was “not disconcerted” by Monday’s announcement that Netflix had hired former Electronic Arts (EA) executive Ken Barker as principal accounting officer, reporting to CFO Spencer Neumann. However, the market is now “very tired” on streaming valuations and the stock could be pressured if member growth and operating profit margin “stall out in tandem.” According to Barron.com, last week, Goldman Sachs analysts also downgraded Netflix stock citing concerns about slower consumer spending and heightened levels of competition from Amazon (AMZN) and Walt Disney Co (DIS).
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