Goldman Sachs downgraded Netflix’s stock from “Neutral” to “Sell,” lowering its price target to $186 from $265. Netflix shares fell 4.6 percent to $184.06 after the brokerage update, contributing to the company’s 68 percent slump in 2022.
Netflix’s troubles began after it lost subscribers for the first time in more than a decade, with several reasons attributed to its decline, some of which include the rising cost of food and gas, which has left people with little to spend on entertainment, and the ongoing war in Ukraine, which has led the company to shut down operations in Russia.
Netflix is now considering a cheaper subscription, which includes advertising, following the success of such deals from rivals HBO Max and Disney+.
“Those who have followed Netflix know that I’ve been against the complexity of advertising, and a big fan of the simplicity of subscription. But, as much as I’m a fan of that, I’m a bigger fan of consumer choice,” said Netflix CEO Reed Hastings.
The sources for this piece include an article in Reuters.