Netflix shares fall after Goldman rating and target price cut

Netflix shares fell sharply on Friday after Goldman Sachs reduced its shares from “neutral” to “neutral” amid the threat of a “consumer recession”.

Netflix shares fell $9.07, or nearly 5%, to $183.74 in late trading after analyst Eric Sheridan lowered the company’s stock price to $186 from $186. 265.

“We are lowering Netflix’s sales rating (from the previous neutral rating) because we are concerned about the impact of the consumer recession as well as increased competition due to demand trends (aggregate and decreasing), expansion and levels of demand. margin. “Spend the content and watch Netflix as the demo story on the way to the Light Catalyst for the next 6-12 months,” Sheridan wrote in a June 10 post.

The Goldman Sachs analyst is not alone as Wall Street awaits as Netflix justifies its remittance and regains investor goodwill after the streaming giant first reported a loss of 200,000 subscribers in recent years.

Sheridan warned that Netflix could still see a rise in subscriber numbers if competing streaming platforms slowed its international expansion, and Streamer would accelerate price increases due to innovations like gaming. He added that Netflix can profit from hacking the password exchange and launching ad-supported layers.

But it was further away, as Netflix had yet to overcome a potential recession and its impact on subscriber retention and churn.

“We are lowering our revenue estimates for 2022-2023 to include the higher likelihood of a weaker macro environment. “More specifically, we’re modestly reducing our paid streaming pills across all regions, but we’re hitting higher ARPU levels in the US and beyond in 2024 to reflect Netflix’s initiatives in its advertising and password level.”