NEW YORK (TheStreet) -- Shares of Netflix (NFLX - Get Report) were falling 2.8% to $441.39 Monday following the announcement of Time Warner  (TWXHBO's HBO NOW online streaming service.

HBO announced the new streaming service at Apple's (AAPL) Spring Forward event. The service will allow users to stream HBO TV shows including Game of Thrones, Silicon Valley, and Last Week Tonight, as well as movies and classic HBO shows such as The Sopranos to Apple devices for $14.99 a month.

HBO TV shows are not currently available to stream through Netflix's streaming service.

The HBO NOW service will be exclusive to Apple devices including the Apple TV and iOS devices when it launches in April before the April 12 premiere of Game of Thrones season 5. There is no mention on when the service will become available for other devices.

About 2 million shares of Netflix were traded by 2:20 p.m. Monday following the announcement, compared to an average trading volume of about 2.1 million shares a day.

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, compelling growth in net income and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, relatively poor performance when compared with the S&P 500 during the past year and generally higher debt management risk."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 1.8%. Since the same quarter one year prior, revenues rose by 26.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Internet & Catalog Retail industry. The net income increased by 72.2% when compared to the same quarter one year prior, rising from $48.42 million to $83.37 million.
  • NETFLIX INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, NETFLIX INC increased its bottom line by earning $4.32 versus $1.85 in the prior year. For the next year, the market is expecting a contraction of 25.0% in earnings ($3.24 versus $4.32).
  • Despite currently having a low debt-to-equity ratio of 0.50, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that NFLX's debt-to-equity ratio is mixed in its results, the company's quick ratio of 0.60 is low and demonstrates weak liquidity.
  • Net operating cash flow has significantly decreased to -$38.46 million or 192.80% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • You can view the full analysis from the report here: NFLX Ratings Report