Netflix has much to prove in its upcoming third-quarter earnings report as it looks to impress investors before facing increased competition.
Goldman Sachs expects subscriber growth to fall “modestly below guidance,” and UBS noted weak international growth could leave the stock “volatile” in the short-term.
Both firms cut their price targets for the stock, but reiterated their “buy” ratings.
The company’s stock has fallen nearly 25% since it reported second-quarter subscriber growth came in under Wall Street’s estimate.
Watch Netflix trade live here.
Netflix has much to prove in its next earnings report after a huge miss for second-quarter subscriber growth and looming competition from Apple and Disney.
Both Goldman Sachs and UBS slashed their price targets for Netflix stock in the last two days and cited third-quarter subscriber strength as the figure to watch before the streaming wars intensify. The company is scheduled to release its third-quarter report on October 18.
Netflix has plunged nearly 25% since July after its second-quarter report showed the service gaining 2.7 million subscribers, well below Wall Street’s forecast of 5 million. The company also lost 126,000 US subscribers during the period — its first contraction since 2011.
Goldman expects …read more
Source:: Businessinsider – Finance