NEW YORK (TheStreet) -- Shares of Chinese online video company Youku Tudou  (YOKU) fell 2.11% to $13.22 in morning trading Monday after Deutsche Bank DB downgraded the stock to "sell" from "hold" and cut its price target to $10.90 from $18.60 on Friday.

The firm said Youku is losing its advantage as its competitors Baidu  (BIDU) - Get Report and Tencent Holdings  (TCEHY) increase their video offerings.

"We believe Youku is facing increasing pressure from the content arms race and market share challenges following a year of 'conservative progression,'" Deutsche wrote in a research note Friday. "In FY14 the company significantly scaled back in PGC, especially head-content procurement, while cash-rich parents supported key competitors iQiyi and Tencent video, which stayed aggressive and made substantial market share gains."

"Youku's market share has slipped from 25% in early 2014 to 22% now, according to EnfoDesk. With hopes of reversing the situation and incubating new business, the company plans to revive an aggressive investment plan in FY15 to regain its momentum, although this is likely too late," the firm continued.

Separately, TheStreet Ratings team rates YOUKU TUDOU INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:

"We rate YOUKU TUDOU INC (YOKU) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its poor profit margins, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."

You can view the full analysis from the report here: YOKU Ratings Report

YOKU

data by

YCharts