Netflix Has Analysts Bolting After Split, Big Gains: What Wall Street's Saying

NEW YORK (TheStreet) -- Netflix's (NFLXstock-split announcement may have impressed some investors on Wednesday, but analysts were planning a different sort of split Thursday as some downgraded shares of the Internet streaming service.

Shares of the Los Gatos, Calif.-based company rose to a record price of $706.24 on Wednesday after the company announced late Tuesday that it will enact a 7-for-1 stock split on July 2, with shares trading at the new price starting July 15.

Following the news, billionaire investor Carl Icahn said he had sold his remaining position in the company -- about 1.4 million, according to filings made at the end of the first quarter of 2015 -- pushing the stock to close in the red on Wednesday, ending at $678.61.

Icahn purchased much of his stake in the company in October 2012, when shares of the company were trading below $80.

Shares continued to sell-off on Thursday, falling another 1.4% to $669.21 as several analysts changed their opinions on the Reed Hastings-led company.

When the company posted first quarter results in April, a higher-than-expected increase in subscribers was strong enough to pull the stock to a new high. Now, expansion is worrying analysts, who fear the cost of moving into other countries will stunt growth in the short-term though possibly lead to better results in the coming years.

Here's what a few had to say:

Pacific Crest analyst Andy Hargreaves (Overweight, $665 PT)

"We see a neutral near-term risk/reward as NFLX likely prices in potential upside prior to the global expansion in 2016. Beyond that, we continue to believe the secular transition to online video, Netflix's leadership position, and potential upside in the model can drive the shares higher. We remain Overweight and recommend buying on any material pullbacks."

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