Netflix (NFLX) - Get Netflix, Inc. (NFLX) Report shares closed lower Monday despite analysts at Credit Suisse boosting their price target on the streaming service giant, buoyed by the success of hit show Squid Game.
Netflix shares closed 0.9% lower to $627.04 and continued falling another 0.1% after hours.
Netflix unveiled a partnership with Walmart (WMT) - Get Walmart Inc. Report to create a new digital storefront -- Netflix Hub -- that will sell merchandise tied to hit shows such as Stranger Things and Squid Game, on the world's biggest retailer's platform.
The partnership will allow Netflix to grow its revenue streams beyond subscription revenue from its content library, the company said.
Credit Suisse analyst Douglas Mitchelson raised his price target on Netflix to $740 a share from $643 and credited Squid Game, a hit dystopian Netflix show where 456 people facing severe debt and financial despair play a series of deadly children’s games, for a stronger outlook
Mitchelson told investors that the success of the show has kicked off a promising stretch for Netflix's stock, citing hopes of a solid finish to the year thanks to a strong content slate.
Analysts at Keybanc Capital Markets also raised their price target on the tech and streaming major to $670 a share from $645 on a better-than -expected recovery in the second half.
Keybanc analysts Justin Patterson and Sergio Segura said the price target upgrade was led by factors including, "continued subscriber growth, consistent price increases and operating margin expansion."
Netflix "appears to have gotten off to a faster start than expected, reflecting the surprise global success of Squid Game.