Analysts Suspect Netflix Shares Will Continue To Fall

With some analysts saying that Netflix stock had entered bargain territory following its 36-percent nosedive on Tuesday, the price of the stock appeared to stabilize at around $75 in early trading today (Wednesday), following Tuesday's close at $77.37. But other analysts warned that even at $75, the stock was overpriced -- particularly when the costs involved in the company's planned expansion and its acquisition of newer movies and television shows is factored into the picture -- plus growing competition from other video websites offering streaming fare. Goldman Sachs advised clients to sell their Netflix shares, noting, "We do not see a clear catalyst path that would drive shares going forward." Vasily Karasyov of Susquehanna Financial Group set a target price of $60. Today's New York Post pointed out that Netflix investors may not be the only ones riled by the company's missteps -- that many of Netflix's own employees had opted to receive part of their pay as stock options. Anthony Wible, an analyst with Janney Montgomery Scott, warned that some of these employees are likely to jump ship. "In Silicon Valley, executives should be asking themselves if they want to be working for today's AOL," he said. Wible predicted that Netflix shares could drop to as low as $51.

26/10/2011


Contactmusic

Tags: Stock - AOL


Advertisement

Editors Recommendations

First Pictures Of Disney’s ‘Into The Woods’ Starring Anna Kendrick and Johnny Depp

Have you ever wondered what happened to Cinderella, Rapunzel and...

First Pictures Of Disney’s ‘Into The Woods’ Starring Anna Kendrick and Johnny Depp

Win Tickets For V Festival 2014 in Chelmsford!

V Festival is getting ever nearer and tickets are quickly selling out, but you can skip that pricey entrance fee by entering our new competition...

Win Tickets For V Festival 2014 in Chelmsford!

Ariana, Zooey, J-Lo, Miley! When Actresses Become Songstresses

Jenny Lewis isn't the only former actress to find musical success.

Ariana, Zooey, J-Lo, Miley! When Actresses Become Songstresses

Critics Say 'Guardians Of The Galaxy' Is Great, But Does Anyone Disagree?

The new Marvel movie Guardians of the Galaxy has been praised to the...

Critics Say 'Guardians Of The Galaxy' Is Great, But Does Anyone Disagree?

What Do We Know About Christopher Nolan's Interstellar?

Christopher Nolan and Matthew McConaughey made a surprise visit to the San Diego Comic-Con last...

What Do We Know About Christopher Nolan's Interstellar?
Advertisement

Jennifer Lawrence Is Hollywood's Darling - How Has She Done It?

A teaser trailer for Jennifer Lawrence’s new film, The Hunger Games...

Jennifer Lawrence Is Hollywood's Darling - How Has She Done It?

NBC News Host Brian Williams Pulls Ultimate Embarrassing Dad Trick Announcing Allison Williams' "Peter Pan" Casting

NBC’s production of Peter Pan has found its lead in Girls star Allison Williams...

NBC News Host Brian Williams Pulls Ultimate Embarrassing Dad Trick Announcing Allison Williams'

The Spongebob Squarepants Movie: Sponge Out Of Water 3D

When a pirate gets his hands on a long lost magic book in which anything he writes comes true, he...

The Spongebob Squarepants Movie: Sponge Out Of Water 3d Trailer


More recommendations

Advertisement

Comments

Stock Newsletter

Subscribe to this news alert service to receive news and reviews on Stock

Unsubscribe | Unsubscribe All