Netflix shares slip early as J.P. Morgan raises new subscriber concerns
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Netflix (NASDAQ:NFLX) shares slipped by almost 2% in pre-market trading, Thursday, as J.P. Morgan analyst Doug Anmuth trimmed his price target on the streaming TV giant due to signs of weaker-than-expected customer growth.
Anmuth cut his price target on Netflix (NFLX) to $725 a share from $750, saying that industry research suggests the company saw "light [fourth quarter] download[s]" of programs after starting the quarter with a bang with its hit series Squid Game. Anmuth said that such data leads him to believe that Netflix (NFLX) will report 6.25 million new customer additions for the fourth quarter when it reports its results on Jan. 20. The company had earlier forecast 8.8 million new customer additions for the final three months of 2021.

"We believe fourth quarter [subscriber] additions were lumpy as Netflix started the quarter with significant spike and buzz around Squid Game, which was released in late September," Anmuth said. "Download growth then slowed and ultimately declined into early December before picking up."
Anmuth said that his "overall positive view on Netflix" hasn't changed, and he left his outperform rating on the company's stock in place.
Anmuth wasn't the only Netflix (NFLX) watcher to trim his price-target view on the company. Stifel analyst Scott Devitt cut his outlook on Netflix's (NFLX) stock to $630 a share from $690, also due in large part to concerns about new subscriber growth.