Netflix Inc. (NFLX): Today's Featured Specialty Retail Loser

Netflix ( NFLX) pushed the Specialty Retail industry lower today making it today's featured Specialty Retail loser. The industry as a whole closed the day down 0.7%. By the end of trading, Netflix fell $1.92 (-2.3%) to $82.98 on light volume. Throughout the day, three million shares of Netflix exchanged hands as compared to its average daily volume of 5.1 million shares. The stock ranged in price between $82.63-$85.55 after having opened the day at $85.11 as compared to the previous trading day's close of $84.90. Other company's within the Specialty Retail industry that declined today were: Mecox Lane ( MCOX), down 10.2%, Sothebys ( BID), down 5.9%, OfficeMax ( OMX), down 4%, and Birks & Mayors ( BMJ), down 3.6%.

Netflix, Inc. provides Internet subscription services for TV shows and movies in the United States and internationally. The company offers its subscribers to watch unlimited TV shows and movies streamed over the Internet to their TVs, computers, and mobile devices. Netflix has a market cap of $4.72 billion and is part of the services sector. The company has a P/E ratio of 28.6, equal to the average specialty retail industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 22.6% year to date as of the close of trading on Friday. Currently there are four analysts that rate Netflix a buy, seven analysts rate it a sell, and 17 rate it a hold.

TheStreet Ratings rates Netflix as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and generally poor debt management.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the specialty retail industry could consider SPDR S&P Retail ETF ( XRT) while those bearish on the specialty retail industry could consider ProShares Ultra Sht Consumer Goods ( SZK).
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