Netflix shares tumble on B of A downgrade
An analyst says the volatility of the media company's stock outweighs its potential rewards.
Shares of the online video-streaming and movie rental company rose more than 30% last week and got a boost Monday after a Morgan Stanley (MS) upgrade. But Bank of America has since dropped its rating on the company from "buy" to "underperform."
Bank of America analyst Nat Schindler reportedly told his clients that, given the volatile nature of Netflix share prices, "we now believe the risks outweigh the reward."
Observers also believe growing content costs and widespread competition from Amazon (AMZN) and others will lead to disappointing results for Netflix in its third-quarter earnings report on Oct. 23.
The past year has seen some wild swings in Netflix's share price. The stock started January below $70 but rose to above $120 in spring. Shares tumbled below $60 last month but began to climb back and were trading Tuesday at $66.36.
More from Top Stocks
Nflx an the stock mkt will nose dive after Romney is elected...
His job one is to build a 'WAR MACHINE'- 2 Trillion $$$ more in your taxes above present military baseline. The present military leaders don't want it but he wants to invade Syria, Iran and back off the Russians as he says ie restart the cold war(?). He is a War Hawk like G.W. He will send your kids to war to died but not his. He like G.W. made sure neither he nor his kids went to war. Ours (the poor and middle income families ) will supply the kids again and again for his ego.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
Like many companies this winter, the fast-food giant blamed a drop in same-store sales on the weather. But could its problems be bigger than a snowbank?
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.