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Needham downgrades Netflix to Hold from Buy; says content slate could take two years to fix
What happened
Needham analyst Laura Martin downgraded Netflix to Hold from Buy, one of the harsher calls in the post-earnings price-target wave. Martin said it could take two years for Netflix to improve its content slate and lift viewer engagement, called the company's advertising revenues a continued disappointment, and said Netflix's 'strategic position is deteriorating' compared with Alphabet's YouTube, Disney and Skydance. Rosenblatt reiterated Neutral (target cut to $71 from $75); Piper Sandler kept Overweight but trimmed to $78 from $85. At least 17 Wall Street analysts have now cut targets since the Q3 report.
Why it matters & what’s next are part of Pro, along with the audio summary.
Start your free 14-day trialWho’s affected
- NFLX (Netflix): down ~5% Wednesday to a new 52-week low, biggest Nasdaq decliner; down 27-30% YTD
- Streaming peers (DIS, WBD/Skydance, CMCSA): Martin says Netflix's 'strategic position is deteriorating' vs Alphabet's YouTube, Disney and Skydance — bearish read for the broader premium-streaming model
Sources