Macquarie research analyst Tim Nollen put a $50 price target on the stock because media companies hold the upper hand. "In keeping with our positive thesis on media names like Time Warner and CBS, we believe content owners rule the roost; Netflix is a price taker in an increasingly competitive market," he wrote in the note.
Shares of Netflix fell $3.24 to $57.26.
The once-high flying Netflix stock, which at one point was trading at around $300, has hit several hurdles over the past year mainly over the cost of acquiring movies and TV series from media companies as well as stiff competition.
Content producers such as Time Warner Inc and CBS Corp are being courted by a slew of Netflix competitors like Apple Inc, Google Inc and Amazon, which are trying to lure people to their streaming video services.
Source: Reuters
