5 Stocks Losing Ground on Monday

1. Netflix, Inc. (NASDAQ:NFLX)

Number of Hedge Fund Holders: 95

Shares of Netflix, Inc. (NASDAQ:NFLX) fell nearly six percent this morning after receiving a downgrade from CFRA. The research firm cut its ratings for the video streaming giant from “Hold” to “Sell.”

CFRA analyst Kenneth Leon believes Netflix, Inc. (NASDAQ:NFLX) would likely underperform the S&P 500 Index in the second half of the year. Leon also cut his price target for the stock from $245 per share to $238 per share.

Separately, investment management firm Oakmark Funds also talked about Netflix, Inc. (NASDAQ:NFLX) in its second-quarter 2022 investor letter, stating:

“Netflix‘s stock price was down considerably after providing a weaker than expected outlook for both subscriber growth and profit margins. After meeting with management and scrutinizing our investment thesis, we lowered our estimate of business value to account for the company’s softer near-term guidance. However, we believe the decline in the company’s share price more than adjusts for this. Indeed, Netflix now trades for a discount to the S&P 500 Index on next year’s GAAP earnings despite our view that the company remains a much better than average business run by a highly accomplished management team. We believe the company’s lead in streaming remains intact and we expect terminal operating margins to be substantially higher than they are today. Furthermore, we are encouraged by Netflix’s potential to enhance revenue growth through advertising, the monetization of password sharing and further penetrating international markets.”

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