FAST FIVE: Netflix Slides After Needham Downgrades, Warns Of Subscriber Exodus In 2020
downgrades the streaming company from hold to underperform, reported The Street.
In about a month, Disney+ has attracted nearly 20 million subscribers.
Concerns about decreasing subscriber growth could spook investors, considering the company has added more than $14 billion in debt to fund its operations.
“WeWork had the same argument: 'We're building something to last.' But getting to profitability risks cutting their share price.” Netflix is risking a subscriber exodus in 2020 if it doesn't cut the price.
Shares of the company could re-test the 240 level as pessimism increases.