Fueled by better-than-expected earnings on Monday evening, Netflix surged after markets opened, up 9.3% to $387.93. As of 12:30 a.m. EDT, the stock has changed course, plummeting 4.9% to $337.62.
The streaming service reported third-quarter earnings of 52 cents a share, beating the expectations of analysts surveyed by Thomson Reuters by 3 cents, on revenue of $1.106 billion.
Separately, CEO Reed Hastings said in a conference call Netflix was still uninterested in hosting sports content, quashing rumors of a partnership with the NFL. "All [our] attributes are on-demand and I don't think that brings much to sports viewing which is primarily a linear experience," he said.
TheStreet Ratings team rates Netflix Inc as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate Netflix Inc (NFLX) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, premium valuation and generally higher debt management risk."