Netflix, Inc. (NASDAQ: NFLX) had been on another tear but a UBS downgrade from Neutral to ‘Sell’ yesterday refuted a WSJ story that Netflix could be a possible takeover target for Amazon.com Inc. (NASDAQ: AMZN). And now we have seen two more analyst downgrades this morning taking even more juice out of this cocktail.
It was just yesterday that shares hit a new 52-week and all-time high of $119.50, but shares closed down at $110.01 on the intra-day downgrade.
Citigroup cut Netflix down to a “Hold” from Buy due to target price and valuation (target $110). Merriman Curhan Ford cut the rating to Neutral from Buy on the same reasoning this morning.
Blockbuster Inc. (NYSE: BBI) earnings were a disaster and shares are down 21% at $0.39 in trading this morning. Our own take is that if Amazon.com really wanted to buy Netflix it should have done so last summer. A Netflix acquisition would only be combining two high valuation and premium multiple stocks even if it would add in a solid business that could easily be consolidated in the Amazon network.
Netflix shares are trading down 4.78% at $104.75 on the two analyst downgrades this morning. At 9:25 AM EST we have seen only about 45,000 shares trade hands.
JON C. OGG
Essential Tips for Investing: Sponsored
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
