Netflix selling 'overdone' with nice setup into earnings - Loop Capital
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Some recent selling pressure for Netflix (NFLX
-1.2%) has Loop Capital Markets seeing opportunity, calling the decline "overdone" on some pessimism over streaming competition.
Shares reached an all-time high of $700.99 on Nov. 17. From there, the stock is 26% lower. (See the six-month chart here.)

Loop says that creates an "excellent setup" ahead of earnings, set to come after the close next Thursday, on Jan. 20. Consensus expectations are for the company to post EPS of $0.83 on revenues of $7.71 billion.
âThe streaming industry has become more competitive, as expected, but the pie has become larger as streaming continues to take share,â the firm says. And while interest-rate concerns have weighed on growth names, the Netflix investment case is "no longer predicated on discounting earnings way in the future."
In fact, with the decline, Netflix now sells at just 30 times next year's earnings - a multiple that has pulled back to the same as Disney's (NYSE:DIS), the firm notes.
It has a $700 price target, now implying 37% upside.
On Thursday in its own earnings look, Credit Suisse said Netflix was facing subscriber challenges and investor interest "as low as we have seen the past eight years."