Here Is Why Investors Are Talking Netflix, Lloyds Banking Group and Others Today

Growth Slowdown

Netflix, Inc. (NASDAQ:NFLX) shares are down by 2.6% this morning after the stock was downgraded by analysts at Jefferies to “Underperform” from the previous “Hold” rating. The firm has also cut its price target to $80 from $120, stating that, according to their research, Netflix, Inc. (NASDAQ:NFLX) subscriber growth curve is poised to flatten out more than investors expect. Jefferies also points to increased competition in the industry, as rivals Hulu and Amazon.com, Inc.(NASDAQ:AMZN) have stepped up their effort to gain market share. The firm also said it expects Netflix’s overseas growth to remain strong, but it will be challenging to maintain due to limited local content, language barriers and underdeveloped infrastructure in some parts of the world. According to our data, 64 of the funds we follow had Netflix, Inc. (NASDAQ:NFLX) in their equity portfolios at the end of the first quarter, amassing roughly 15% of the company’s common stock.

Turnaround

Birks Group Inc (NYSEMKT:BGI) shares are rallying after the company swung to a profit in the fiscal 2016. An operator of jewelry stores in US and Canada, Birks Group Inc (NYSEMKT:BGI) reported $285 million in net sales, down by 5% compared to fiscal 2015, and a profit of $5.4 million or $0.03 per share, up from a loss of $0.48 per share reported for the previous year. The company registered a 3% growth in comparable store sales, while selling, general and administrative costs fell to 31.9% of net sales, from 34.4% of net sales registered in fiscal 2015. “Following a year of restructuring our Company’s operations, the main factors that contributed to our success in fiscal 2016 included our continued dedication to enhancing customer experiences via our new store designs, the successful launch of our new collections and our creative marketing campaigns,” commented Jean-Christophe Bédos, President and CEO of the company. None of the funds in our database had Birks Group Inc (NYSEMKT:BGI) in their portfolios at the end of the first quarter.

More Misery For British Banks

The stock of British banking giant Lloyds Banking Group PLC (ADR) (NYSE:LYG) gets hammered again amid uncertainty regarding the UK’s future in the European Union. British bank stocks were severely punished following the release of UK’s EU referendum results, with Lloyds Banking Group PLC (ADR) (NYSE:LYG) having fallen by 37% in seven trading days. With UK commercial property prices facing increased downside risk, Lloyds stock faces increased pressure as the bank’s commercial property loan portfolio amounts to approximately 18.1 billion pounds ($23.3 billion), which represents roughly 46% of its tangible net asset value. This week, three asset managers have frozen withdrawals from real-estate funds, adding more gas to the fire. With the Pound also dropping to new historic lows, foreign investors will see the value of their holdings decrease further. Only seven of the funds followed by Insider Monkey were holding Lloyds Banking Group PLC (ADR) (NYSE:LYG) shares at the end of March, up from five registered a quarter earlier.

Disclosure: none.