“New Netflix analyst on Wall Street says stock could fall 15% if its forced to spend more on content”
December 3, 2019
“Citi has a new Netflix analyst and he’s joining the minority of Wall Street analysts that are cautious on the stock… “Street estimates [are] too high,” Bazinet said in a note to clients on Tuesday.
Over the last seven years, there has been a correlation between spending on content and new added subscribers, the analysts points out. But Wall Street forecasts now on Netflix “deviate” from this long-term pattern. The new Netflix analyst therefore said either Netflix needs to spend even more on content or subscriber estimates need to fall on Wall Street…”