uploads///netflix pixabay

Buckingham Research Downgrades Netflix due to Competition Fears

By

Dec. 4 2020, Updated 10:53 a.m. ET

Netflix stock price movement

On March 8, Netflix (NFLX) stock fell 0.9% to $349.60 after Wall Street analyst Matthew Harrigan from Buckingham Research downgraded its rating from “buy” to “neutral.” The analyst also said in a note to its clients that the stock doesn’t look attractive to him in the current market scenario. The analyst has, however, reiterated the price target at $382.

Netflix stock has been reeling under pressure for some time. Apart from the analyst downgrade, other events had led to the weakness in the stock. Netflix stock was down 2.4% this month but increased 30.6% in the YTD period as of March 8. Netflix stock grew the most on a YTD basis in the so-called FAANG group, which consists of Facebook (FB), Apple, Amazon (AMZN), Netflix, and Google-parent Alphabet (GOOGL). The stock prices of Facebook, Apple, Amazon, and Alphabet increased 29.4%, 10.1%, 7.9%, and 10%, respectively, on a YTD period as of March 8.

Article continues below advertisement

Factors hurting the stock

Netflix is popularly known as the content king, but the streaming giant has been grappling with stiff competition from Walt Disney (DIS), AT&T’s (T) WarnerMedia, and Comcast’s (CMCSA) NBCUniversal, which are planning to launch streaming services soon. Netflix was already competing with giants like Amazon, AT&T’s (T) HBO, Hulu, and Alphabet’s YouTube in the streaming market.

Also, the recent announcement that Kelly Bennett, Netflix’s chief marketing officer is leaving the company after seven years of service has put the management in flux. David Wells, the company’s finance chief, also left the company in August 2018. The uncertain broader market is also negatively impacting the stock.

Advertisement

More From Market Realist

    • CONNECT with Market Realist
    • Link to Facebook
    • Link to Twitter
    • Link to Instagram
    • Link to Email Subscribe
    Market Realist Logo
    Do Not Sell My Personal Information

    © Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.