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Netflix Bear Who Predicted Collapse Says Shares Could Fall 30%

Netflix Bear Who Predicted Collapse Says Shares Could Fall 30%
Mohamed Ahmed Soliman | Dreamstime.com

Friday, 19 July 2019 12:20 PM

Netflix Inc.’s decline after subscriber additions fell short of estimates is just a taste of things to come, according to a Hedgeye analyst who predicted the collapse.

Even as shares dropped 12% Thursday, they “could fall another 30%,” analyst Andrew Freedman told clients.

Netflix stock (NFLX) was down 1 percent early Friday at $322.04.

If this sounds familiar, that’s because it is. In early March, when the stock was trading about 10% higher, he projected a 30% decline. Freedman reiterated that short call Thursday, citing slowing growth, saturation, price increases, content losses and increasing competition.

“The growth story is coming to an end,” Freedman said in an interview. “Netflix has been cutting prices in other countries such as India in order to maintain growth at the expense of margins.”

He continues to believe price increases will slow the rate of adoption and expects subscriber additions to come in below consensus in the second half of 2019.

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Netflix Inc.'s decline after subscriber additions fell short of estimates is just a taste of things to come, according to a Hedgeye analyst who predicted the collapse.
netflix, bear, stock, shares, price
156
2019-20-19
Friday, 19 July 2019 12:20 PM
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