Santosh Rao, head of research at Manhattan Venture Partners, told Yahoo Finance that "the worst is priced in" and advised investors to be patient and focus on the next several quarters. Sheridan slashed his price target to $186 (down from $265), citing "concerns around the impact of a consumer recession as well as heightened levels of competition on demand trends." On Friday, Goldman Sachs ( GS) analyst Eric Sheridan downgraded shares to Sell from Neutral. The analyst admitted to "prematurely" upgrading the stock to Hold following the company's Q4 earnings report. All Rights Reserved.The bears are also out in force: On Tuesday, Benchmark analyst Matthew Harrigan reverted back to a Sell rating on the stock and issued a new price target of $157 a share. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2019 and/or its affiliates. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. Factset: FactSet Research Systems Inc.2019. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. That's very important because the larger overseas subscriber base helps offset Netflix's expensive licensing fees. Estimize, which crowd sources estimates among a broader group of observers, is predicting stronger earnings north of 6 cents a share.īesides the headline numbers, the key will be Netflix revealing new evidence that the streaming service's rapid international expansion is on track. This time around, analysts believe Netflix will post earnings of 4 cents a share - a big decline from a year ago due to higher costs. Its earnings crushed Wall Street's expectations by 28%, sending its stock soaring to new heights. Netflix reported blockbuster first-quarter results in April. "With such an incredibly high multiple, the stock is extremely vulnerable to a large decline if Netflix does not deliver in their upcoming report," Estimize wrote in a report this week. Will Netflix 'deliver' an earnings dud? All of this means Netflix management needs to live up to its well-deserved reputation for under-promising and over-delivering on earnings. Related: Do you need to be a 'Daredevil' to buy Netflix stock? Even Fitbit's ( FIT) P/E ratio is way less than Netflix at 57. ![]() By comparison, Facebook ( FB) is trading at "only" 34 times its expected 2016 earnings. That price-to-earnings ratio is very high. Netflix is trading at a ridiculous 226 times its projected 2016 earnings. That's because despite making its shares cheaper, Netflix still remains extremely expensive based on the metrics that truly matter. That's when Netflix hits the earnings stage. ![]() Netflix is still pricey: But will it work for Netflix? Clues to that question should emerge after the closing bell on Wednesday. Related: Twitter shares soar on phony Bloomberg story The iSplit successfully fueled enthusiasm among Apple fans to take advantage of the lower price. The remaining high-flyers are Priceline ( PCLN), Google ( GOOGL) and biotech star Regeneron ( REGN).Īpple ( AAPL) carried out a seven-for-one split of its own in 2014 after its stock skyrocketed. Thanks to those big gains, Netflix was one of just four S&P 500 companies with a share price above $500 before the stock split. Netflix shares more than doubled this year, crushing the Nasdaq's 8% gain. Stock splits are a sign that a company's stock price has appreciated enough where it may scare away retail investors. ![]() Frank Underwood, the Machiavellian main character in Netflix blockbuster House of Cards, would approve of the savvy move by Netflix.
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