Netflix Stock Gaps Down On Today's Open (NFLX)

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

NEW YORK ( TheStreet) -- Shares of Netflix (Nasdaq: NFLX) were gapping down Wednesday morning with an open price 15.2% lower than Tuesday's closing price. The stock closed at $68.22 Tuesday and opened today's trading at $57.86.

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The average volume for Netflix has been 4.7 million shares per day over the past 30 days. Netflix has a market cap of $3.77 billion and is part of the services sector and specialty retail industry. Shares are down 2% year to date as of the close of trading on Tuesday.

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. The company has a P/E ratio of 37.3, equal to the average specialty retail industry P/E ratio and above the S&P 500 P/E ratio of 17.7.

TheStreet Ratings rates Netflix as a hold. The company's strengths can be seen in multiple areas, such as its 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 higher debt management risk. You can view the full Netflix Ratings Report.

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