Another Big Loss for Netflix
Sep 4th 2012 11:01AM
Netflix Inc. (NASDAQ: NFLX) just cannot seem to catch a break. Despite having millions and millions of subscribers, the all-you-can-eat movie and television service is getting hit hard on news that rival Amazon.com Inc. (NASDAQ: AMZN) signed a deal with Epix for video streaming. This deal effectively ends the exclusivity that Netflix had with Epix and it only brings on that much more competition.
At issue is that Netflix has (or maybe had) a goal of reaching 7 million new subscribers in 2012. The fewer exclusive engagements that Netflix has, the less attractive Netflix is for consumers. Netflix already lost its content pact with Starz, which means that it lost much of the Disney content. Sorry about that kids …
Netflix shares are now close to challenging a 52-week low as the low of today was $53.13 according to NASDAQ, and the 52-week trading range is $52.81 to $221.98. While the stock has recovered marginally, Netflix shares are still down 8.3% at $54.72 on the day.
What makes things even worse is that the analyst community went from hot to snot here. Thomson Reuters shows a consensus price target of only $76.86 as of now. Usually you see much higher price targets when you have an out of favor former high-flyer that is down more than 75% from its highs.
JON C. OGG
Filed under: 24/7 Wall St. Wire, Internet, Media Tagged: AMZN, NFLX