NEW YORK (TheStreet) -- Netflix (NFLX) shares are down 1.45% to $345.82 in early market trading on Monday after the media streaming service had coverage initiated with a "neutral" rating by analysts at UBS on Monday.
Netflix stock has declined 5.6% so far this year with the company reporting domestic streaming subscriber growth of less than 1 million new users, falling short of its own guidance of 1.33 million new users, during the third quarter financial period.
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Separately, the company will also reportedly have new competition in Australia when it launches its service there next year. Broadcast network Seven and pay television giant Foxtel announced plans for a streaming service to rival Netflix.
The companies did not announce a launch date for the Netflix rival while the U.S. based Netflix is set to make its Australian debut in March.
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 robust revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, weak operating cash flow and generally higher debt management risk."