Shares of Netflix Inc. (NFLX) plummeted 19.6% in premarket trading Friday, as the streaming-video service's disappointing outlook overnight prompted a number of Wall Street analysts to cut their ratings, but at least one analyst said the selloff appears "overcooked." Benchmark's Matthew Harrigan, who's been bearish on Netflix for at least the past two years, isn't turning bullish, but he did raise his rating to hold from sell. "Netflix stock should find a floor as the $405 after market price discounts both member growth deceleration and margin underachievement," Harrigan wrote in a note to clients. He "vacated" his previous $470 stock price target, but now sees fair value for the stock at $450. Harrigan said he's still bullish on the direct-to-consumer streaming migration, but he views Netflix as "first among equals" rather than a dominant player commanding overwhelming network effects. The stock, which is on track to open at the lowest price seen during regular-session hours since June 2020, has already slumped 22.2% over the past three months through Thursday, while the S&P 500 has slipped 1.5%.
(END) Dow Jones Newswires
January 21, 2022 06:50 ET (11:50 GMT)
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