Why Netflix Stock Keeps Falling
Continuing Friday's sell-off, shares of Netflix (NASDAQ: NFLX) stock sank 5.2% through 9:55 a.m. ET Monday after the stock suffered a downgrade at the hand of NYC-based equity research firm CFRA.
As StreetInsider.com reported this morning, CFRA cut its rating on Netflix from hold to sell with a $238 price target. After this morning's sell-off, share shares cost $229 and change.
Granted, a $238 price target on a stock that costs $9 less than $238 seems to suggest that CFRA should be recommending you buy Netflix rather than sell it. But as the analyst points out, a lot of the upside in Netflix has dissipated thanks to the stock's 40% run-up in price since the middle of July. Now the greater risk is that Netflix will start missing expectations and start to give back its gains from the past month.
Source Fool.com
