He lowered his price target on Netflix to $67 a share, a steep drop from his previous target of $205. " start-up costs in Latin America and UK/Ireland are likely to come in much higher than we anticipated."Īnmuth also expressed concern about rising content licensing costs.
and international markets remains intact," Anmuth wrote in a note to clients. "The long-term potential for streaming-only in the U.S. Perhaps even more concerning: Netflix's streaming video service expansion into the United Kingdom and Ireland, announced earlier on Monday, will make the company's overall business unprofitable "for a few quarters" starting at the beginning of 2012.ĭowngrades pour in: The dour report led JP Morgan analyst Doug Anmuth to downgrade Netflix shares on Tuesday to "neutral" from "overweight." It forecast that it will have 20 million to 21.5 million streaming customers and up to 11.3 million DVD subscribers in the U.S. 31, Netflix said it expects to lose even more subscribers. 30, down from 24.6 million three months earlier.īy the end of the ongoing quarter, which wraps up Dec. But Netflix kicked off last quarter on a sour note by announcing it would begin charging separate prices for its DVDs-by-mail and streaming video plans, resulting in a big price hike for Netflix customers.Īs a result, for the first time in years, Netflix's U.S. Shares started the year around $180 and rallied in the spring thanks to a growing subscriber base. Analysts promptly downgraded the stock Tuesday morning, with one calling the report a "nuclear winter scenario." Shares finished the day at $77.37, after nearly topping $300 in mid-July.
0 kommentar(er)
