HSBC downgraded Netflix stock from a buy to a hold this week, citing troubling trends in user engagement and YouTube’s rising influence on television viewing.
\n\nHSBC analyst Mohammed Khallouf dropped his target price of Netflix stock from $96 to $76, arguing that YouTube has enjoyed a “declining reception” to Netflix’s original content, adding that he believes a “near-term recovery in engagement looks unlikely.” Netflix’s share of U.S. TV time has also steadily dropped 7.8 percent since July, per TheWrap.
\n\nAs of Wednesday afternoon, Netflix shares were trading at $71.74 apiece, well below its 52-week high of $124.86 per share but still above its 52-week low of $65.08.
\n\nIn addition to its declines in the past year and past six months, Netflix stock has fallen 21% year to date, 10% in the past month and 6.6% in the past five days, but is up 21% in the past five years.
\n\nThe downgrade comes roughly one week after shares for the streaming giant fell 5 percent following Wells Fargo downgrading its stock due to worrying trends in user engagement.
\n\nThe report, titled “Engagement Risk,” from Wells Fargo analyst Steven Cahall alleged that the streamer’s user engagement had fallen behind in the Nielsen…
Original source: https://www.breitbart.com/economy/
