AIRLINK 180.10 Increased By ▲ 3.78 (2.14%)
BOP 13.09 Decreased By ▼ -0.36 (-2.68%)
CNERGY 7.48 Decreased By ▼ -0.01 (-0.13%)
FCCL 45.18 Decreased By ▼ -0.11 (-0.24%)
FFL 16.06 Increased By ▲ 0.84 (5.52%)
FLYNG 27.43 Increased By ▲ 0.43 (1.59%)
HUBC 133.24 Increased By ▲ 0.14 (0.11%)
HUMNL 13.02 Increased By ▲ 0.01 (0.08%)
KEL 4.45 No Change ▼ 0.00 (0%)
KOSM 5.97 Increased By ▲ 0.01 (0.17%)
MLCF 58.81 Increased By ▲ 0.78 (1.34%)
OGDC 218.59 Increased By ▲ 0.31 (0.14%)
PACE 5.87 No Change ▼ 0.00 (0%)
PAEL 42.62 Increased By ▲ 1.00 (2.4%)
PIAHCLA 16.50 Increased By ▲ 0.14 (0.86%)
PIBTL 9.92 Increased By ▲ 0.50 (5.31%)
POWER 11.95 Increased By ▲ 0.07 (0.59%)
PPL 183.08 Decreased By ▼ -1.54 (-0.83%)
PRL 35.33 Increased By ▲ 0.15 (0.43%)
PTC 24.34 Increased By ▲ 0.64 (2.7%)
SEARL 95.82 Increased By ▲ 1.29 (1.36%)
SILK 1.15 Decreased By ▼ -0.02 (-1.71%)
SSGC 37.31 Increased By ▲ 0.11 (0.3%)
SYM 16.08 Decreased By ▼ -0.10 (-0.62%)
TELE 7.88 Increased By ▲ 0.01 (0.13%)
TPLP 10.84 Increased By ▲ 0.10 (0.93%)
TRG 60.94 Decreased By ▼ -0.40 (-0.65%)
WAVESAPP 10.79 Increased By ▲ 0.02 (0.19%)
WTL 1.33 Decreased By ▼ -0.01 (-0.75%)
YOUW 3.77 Increased By ▲ 0.01 (0.27%)
BR100 12,215 Decreased By -29.5 (-0.24%)
BR30 37,439 Increased By 64.4 (0.17%)
KSE100 115,536 Increased By 441.9 (0.38%)
KSE30 35,658 Increased By 47 (0.13%)

Netflix Inc shares fell 5% on Friday after Goldman Sachs downgraded the streaming giant, which is facing a slowdown in consumer spending and tough competition from Amazon.com and Walt Disney Co.

The streaming pioneer in April lost subscribers for the first time in more than a decade in a sign of troubled times ahead for the industry as rising prices of food and gas left people with little to spend on entertainment.

Suspending its services in Russia after the Ukraine invasion also took a toll on Netflix.

Goldman downgraded the stock to “sell” from “neutral” and slashed its price target to $186 from $265, the lowest PT among analysts covering the stock, according to data from Refinitiv.

Netflix to pay $59 million to settle Italian tax dispute

“The cost of living crisis will have a major impact on all streaming services. Lets not forget the market is now awash with too many streaming media services chasing too few services,” said Paolo Pescatore, an analyst at PP Foresight.

“Expect to see high levels of churn given the very nature of how streaming services are marketed and sold. Therefore, expect some to pivot more towards a yearly discounted bundle to entice users and increase loyalty.”

Netflix is already considering a cheaper subscription that includes advertising, following the success of similar offerings from rivals HBO Max and Disney+.

Of 48 equity analysts covering Netflix, 12 rate the stock “buy” or higher, 31 “hold” and five recommend “sell” or “strong sell”. Their median price target on the stock is $297.50.

Comments

Comments are closed.