NEW YORK (TheStreet) -- Shares of Netflix  (NFLX - Get Report)  were falling before the market open on Monday after Alibaba Group (BABA) announced that it was not making a bid for Netflix, Reuters reports.

Speculation grew on Friday that the Chinese mobile commerce company was seeking an investment in Netflix, based in Los Gatos, CA.

An Alibaba spokesperson recently debunked those rumors, telling Reuters the company was not interested in placing a bid.

Recode Managing Editor Ed Lee said on CNBC's "Power Lunch" on Friday that a deal between the two was "very unlikely," citing issues like regulatory problems and media censorship in China.

In Netflix's earnings release in July, the company said it was encountering a tough regulatory environment in China and that it "has become more challenging" to gain traction there. However, Netflix confirmed that it is still exploring options to expand in the country.

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

TheStreet Ratings rated this stock as a "hold" with a ratings score of C+.

The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, TheStreet Ratings finds weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and weak operating cash flow.

You can view the full analysis from the report here: NFLX