Investing.com – Netflix (NASDAQ:) fell Tuesday following a downgrade from Needham, which has already expressed its concern the streaming service would start bleeding subscribers as new rivals gain traction.
Needham cut the stock to underperform from hold.
Shares fell 1.5% in midday trading.
Netflix (NASDAQ:) needs “a second, lower priced, service to compete with Disney+, Apple+, Hulu, CBS All Access and Peacock,” analyst Laura Martin wrote.
The new tier would have to have advertising to offset revenue losses, but Netflix (NASDAQ:) is committed to remaining ad free, which is a key reason for the downgrade, Graham said.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.