Netflix cut to Sell at Goldman Sachs on fears of a 'consumer recession'
Mario Tama/Getty Images News

Goldman Sachs downgraded Netflix (NASDAQ:NFLX) to its lowest rating Friday citing worries about consumer spending and competition.
Goldman cut Netflix to Sell from Neutral and lowered its price target to $186, down from $265 and only about a 4% drop from current levels.
NFLX is down 3.5% in premarket trading.
"We downgrade NFLX to Sell (from prior Neutral rating) as we have concerns around the impact of a consumer recession as well as heightened levels of competition on demand trends (both in the form of gross adds and churn), margin expansion, & levels of content spend and view NFLX as a show-me story with a light catalyst path in the next 6-12 months," analyst Eric Sheridan wrote in a note.
"We are lowering our 2022-2023 revenue estimates to incorporate a greater probability of a weaker macro environment," Sheridan added. "More specifically, we modestly lower our paid streaming subs across every region but incorporate higher ARPU levels in the US in 2024 & beyond to reflect Netflix's initiatives around its ad-supported tier and password sharing."
The is talk swirling of Netflix (NFLX) buying Roku (ROKU), an idea some say is "absurd."
NFLX is down nearly 70% year to date. Seeking Alpha Authors are still bullish on the stock, while Wall Street remains neutral and Quant Rating flashes a Sell.