Netflix sheds a quarter of its value as analysts rush to reset on subscriber miss
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Tech investors are eyeing earnings season with some trepidation as Netflix (NASDAQ:NFLX) face-plants out of the starting gate, with the stock tumbling after investors booed its latest subscriber numbers.
Netflix has cratered down 24.9%, pacing toward its worst daily drop since summer 2004.

Analyst reaction has generally been to cut their Buy ratings to Neutral. More than a half-dozen firms made that downgrade, joining others who were already Neutral on the name. KeyBanc cut to Sector Weight, suggesting that investors will look at the stock with a new multiple now that it's growing in the low double digits.
KeyBanc had plenty of company, however. Baird cut to Neutral and its $420 price target implied 17% downside from Thursday's close - but now 10% upside after Netflix's Friday swan dive.
Goldman Sachs cut its target to $450 from $580 - based on cutting Q1 revenue estimates to $7.9 billion from $8.1 billion, and GAAP EPS to $289 from $3.56 - calling the report a "mixed picture" of subscriber growth and margin trajectory.
"While the shares have underperformed the market for the last 18 months, we still see key debates as open-ended with respect to post-pandemic normalized growth rates (especially given heightened competitive intensity) and the emerging RoI from content spend in an environment of slower growth," the firm says. The slack guidance will "restart a debate over the impact of price increases & the ability of the content slate to move the needle on gross additions."
Barclays has a $425 target, and Credit Suisse and Morgan Stanley both cut to Neutral and has a $450 target.
While a big rack of firms cut back their optimism sharply, not all was bearish among analyst reactions. Bearish Benchmark saw an "overcooked" sell-off and upgraded to Hold from Sell. BMO has an Outperform rating and cut its target, but just to $650, now implying 69% upside.
The firm expects the renewal of questions about alternate monetization as low gross adds continue to weigh on subscriber growth. But it expects management to engage on buybacks that will support the stock price, and it thinks the "lack of regulatory risk relative to other FAANGs should be viewed more positively in light of recent congressional activity."
J.P. Morgan and BofA both have Buy/Overweight ratings and price targets trimmed back to $605.
Netflix's digital video peers are falling as well (as are large chunks of the broader market). Disney (NYSE:DIS) is down 6.5%. Roku (NASDAQ:ROKU) is off 8.1%. Discovery (NASDAQ:DISCA), headed for a merger with WarnerMedia and HBO Max, is 2.1% lower, and Paramount+ parent ViacomCBS is down too (VIAC
-4.2%, VIACA
-4.4%). Formerly high-flying fuboTV (NYSE:FUBO) is -8.1%.