Dismal monthly inflation data hit stocks Friday with tech, internet and media taking a beating and Goldman Sachs slapping rare ‘sell’ rating on Netflix and a few others.The bank downgraded the streamer from ‘neutral’ on economic and competitive jitters and cut its price target to $186 from $265 – the lowest on the Street.“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 and levels of content spend,” said Goldman analyst Eric Sheridan in a note to clients.Netflix shares closed down 5.1% at $182.94.
That’s a long way down from its 52-week high of over $700. Year to date, it’s lost almost 70% after missing on its subscriber numbers and outlook last quarter.Analysts and economists worry about slower consumer spending as inflation tightens its grip and prices surge from gas to food to housing.
The U.S. Bureau of Labor Statistics reported this morning that annual inflation in May hit a new 40-year high at 8.6%. That’s how much prices have risen year over year.
The Federal Reserve has been hiking interest rates to try to cool of the economy and dampen prices but that has its own pitfalls, including the risk of recession.Netflix is now a “show me story,” Goldman said, citing rivals Disney and Amazon whose stocks are also being pummeled today amid the downdraft (off, respectively, 3.7%% and 5.6%).Apple fell 3.8%.The Nasdaq lost 3.52% at the close.
Read more on deadline.com
Get the latest stars news and celebrity rumours with exclusive stories, photos, videos and interviews.
Breaking up, scandals, engagements, divorces, gossip – all you need to know about the private lives of your favorite celebs.
Get to know the latest showbiz news along with exclusive interviews and even more. All this is waiting for you on the main page 24 hours a day, 7 days a week! Who, where, when, with whom, how, why and for what!? Stay tuned to know first!
Just follow us daily and we will provide you with the current news from the life of famous stars and celebrities.
Owner: SNOWLAND s.r.o.
Registration certificate 06691200
Address:
Snowland s.r.o.
16200, Na okraji 381/41, Veleslavín, 162 00 Praha 6
Czech Republic
©2024. All rights reserved.