In a posting earlier this year I recommended not to buy Netflix despite it fitting my profile of companies whose stock was heavily depressed and might recover, see this link for the story. Well I was on the nose as it turns out. To boost sales Netflix has tried to expand internationally, but networks outside the USA have trouble coping with high speed HD video streams as I discovered, so I think they will have issues, and the cost of expansion is hurting their bottom line. At the time Netflix was trading at $86 down from well over $150. Yesterday Netflix released very poor figures and the stock plunged again to $60. See below report from Silicon Valley News.
LOS GATOS -- Shares of Netflix (NFLX) plunged 25 percent on Wednesday as numerous analysts slashed their earnings forecasts, lowered their ratings or reduced their price targets on the company's stock in the wake of its earnings report on Tuesday.
At least three analysts changed their ratings on the company's stock from a "buy" to a "hold" or a "sell" in the wake of Netflix's report, according to Thomson Reuters.
The company's stock was $60.28 at the close in New York.
As part of its second-quarter report, which included a 91 percent drop in earnings, the Los Gatos company warned that it may not meet its previously stated goal of adding 7 million new U.S. streaming video subscribers this year, after adding a paltry 530,000 new subscribers in the second quarter. The company also warned that it might post losses in both its third and fourth quarters thanks to a costly international expansion of its streaming video business.
LOS GATOS -- Shares of Netflix (NFLX) plunged 25 percent on Wednesday as numerous analysts slashed their earnings forecasts, lowered their ratings or reduced their price targets on the company's stock in the wake of its earnings report on Tuesday.
At least three analysts changed their ratings on the company's stock from a "buy" to a "hold" or a "sell" in the wake of Netflix's report, according to Thomson Reuters.
The company's stock was $60.28 at the close in New York.
As part of its second-quarter report, which included a 91 percent drop in earnings, the Los Gatos company warned that it may not meet its previously stated goal of adding 7 million new U.S. streaming video subscribers this year, after adding a paltry 530,000 new subscribers in the second quarter. The company also warned that it might post losses in both its third and fourth quarters thanks to a costly international expansion of its streaming video business.
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