With the video streaming company losing its value by a fifth on Thursday, analysts cut down their price targets apparently blindsided by an unexpected decrease in new subscribers to Netflix Inc (NFLX.O).
At least 20 brokerages, BTIG Research is not being a least of them, which also notably two days prior Netflix posted the third quarter results, promoted the stock, advised investors with a “buy” guidance before changing their advice, apparently, too late.
BTIG stated that the promotion it did on Oct. 13, in hindsight, came at the worst time possible. On Thursday afternoon, the stock was trading at $362.45 a very far cry from the brokerage’s set one-year price target of $600.
However, the long-term results of a costly investment by Netflix towards original content and markets outside the U.S. is what, like many others, BTIG is wagering on.
It should be noted though that this was prior to the company declaring a more than below its own predicted number of subscribers which was 3.69 million to an actual count of 3.02 million.
Still a lot of brokerages maintain a positive outlook on the stocks, although it will depend heavily on how patient investors would be. As stated by Bank of America Merrill Lynch that Eventual profitability is being expected of new international markets, but time and patience is required, of which some investors may not have.