The Netflix situation is becoming scary. The stock was down another 9.4% today, to $129.66. That means the company has lost 55.4% of its value since July 11, the day before it announced its decision to split the streaming video service from DVD rentals — upping the subscription price by 60% for those who still want both. Yesterday, CEO Reed Hastings apologized for his PR blunder by trying to gloss over that fact. He adding that the DVD-rental business will have a new name, Qwikster, and begin to rent video games as well. How low can Netflix go? Caris & Co analyst David Miller today slashed his target price to $103 from $185 and made his second downgrade in a week. Last Friday, he considered Netflix an “above average” investment. Now he says it’s “below average,” noting that the odds that the company will soon have its first quarter with $1B in revenues — which some analysts have expected — “are now fleeting at best.” Lazard Capital Markets’ Barton Crockett, who is neutral on the stock, called the Qwikster decision a “stumble” adding that many consumers will “be confused and never find the Qwikster website.” But Barclays Capital’s Anthony DiClemente maintained his recommendation for investors to “overweight” Netflix stock which he says could hit $260: Although moving the DVD business off into Qwikster “does add uncertainty” in the short term, he notes that it frees Netflix to make better decisions for video streaming — including ways to optimize its user interface for iPhones and iPads.
Netflix Stock -9.4% As Wall Street Wonders How Low It Can Go
What's Hot on Deadline
Aaron Sorkin To Congressional Newbies: "Stop Acting Like Young People"; Alexandria Ocasio-Cortez Fires Back
'Pirates Of The Caribbean' & 'Titans' Star Brenton Thwaites, Lily Sullivan Lead Oz Pic 'I Met A Girl'
Gillian Anderson Set To Join 'The Crown' Season Four As Former British Prime Minister Margaret Thatcher
Latest Film News
- Awards-Season Noms Lacking Again For Women Behind The Camera
- Casey Affleck-Elisabeth Moss Movie ‘Light Of My Life’ Among Berlin World Premiere Additions
- Great Point & Development Partnership Launch Production Slate With Movies From James Norton & ‘ The Iron…
- ‘Stan & Ollie’ Director Jon S. Baird On Joining Martin Scorsese’s Inner Circle, And Doing Justice To Laurel…
- ‘Pirates Of The Caribbean’ & ‘Titans’ Star Brenton Thwaites, Lily Sullivan Lead Oz Pic ‘I Met A Girl…
- Razzie Awards Nominations Are Out: Four Movies “Lead” In Best Of Worst Race