Netflix Inc. (NASDAQ:NFLX) stock fell nearly 1% in Monday’s premarket trading after closing 7.3% lower in the previous session. The decline came as analysts cut their price forecasts following the company’s latest earnings report, despite a broader risk-on backdrop that lifted S&P 500 futures by 0.4%.
Netflix Analysts Cut Forecasts After Earnings
Netflix reported second-quarter revenue growth of 13%, while viewing time increased 2%. The company also remains on track to generate more than $15 billion in profit this year.
Even so, investors focused on signs of moderating growth. The stock sold off after the results, reflecting concerns that Netflix’s rapid expansion is slowing following years of strong gains.
Rosenblatt analyst Barton Crockett maintained a Neutral rating and lowered his price forecast to $75 from $95. He said second-quarter revenue missed expectations, and management did not have a “great explanation” for the slower revenue growth expected in the third quarter.
