(FOX BUSINESS) – Shares of Netflix are on track for their worst day in over a decade after at least nine Wall Street analysts downgraded the stock following the streaming behemoth's disappointing earnings results. As of the time of publication, the stock is down more than 36% on Wednesday.
Wedbush Securities analyst Michael Pachter has maintained a neutral rating for Netflix and lowered the firm's price target for Netflix from $342 to $280.
Pachter wrote in a note to clients that Netflix faces five major headwinds, including market saturation in the U.S. and Canada; competition for content and wallet share; inflation, and "the effects of a pull-forward to 2020 from shelter-in-place that are only now reversing." He added that the situation between Russia and Ukraine will continue to be a drain on revenues but noted that the impact on subscribers will be more modest.
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