Netflix shares tumble on B of A downgrade
An analyst says the volatility of the media company's stock outweighs its potential rewards.
Netflix (NFLX) shares traded sharply lower Tuesday after Bank of America (BAC) downgraded the stock.
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.
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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.
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