Notable Netflix bear Matthew Harrigan from Benchmark analyst on Tuesday reiterated his sell rating on Netflix and $412 stock price target amid what he sees as waning interest in the streaming content provider’s lineup in 2021 despite ongoing pandemic-induced stay-at-home orders that continue to propel consumers to the small screen.
In a note to clients, Harrigan said he doesn't expect any upside surprises for member growth in the just-passed quarter or through 2021, in large part because global subscriber growth already has become ubiquitous, evidenced by a steep slowdown in new subscribers in the third quarter and wide miss on earnings forecasts.
The analyst also pointed to heightened competition from successful new competitors, including Walt Disney’s (DIS) - Get Report Disney+, Apple’s (AAPL) - Get Report Apple TV+ and Telecom giant AT&T's (T) - Get Report HBO Max.
"Netflix's trading correlation with other prominent Nasdaq 100 and FAAMG names has now clearly broken down as 1) confidence in its streaming exceptionalism is fading somewhat even as 2) the stay-at-home trade may be "very 2020" even with some concern over how U.K. and South African virus mutations could affect Covid-19 vaccine efficacy," Harrigan wrote.
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