Shares of several companies are trading higher Tuesday as stocks rebound following weakness stemming from recent Fed policy tightening. However, Netflix Inc (NASDAQ:NFLX) is underperforming. So what's going on?
Stifel analyst Scott Devitt maintained Netflix with a Hold rating on Tuesday and lowered his price target from $300 to $240, citing affordability concerns.
Devitt believes Netflix's subscriber slowdown can be attributed to the company's pricing model, which the Stifel analyst says is a barrier to growth outside of developed markets.
See Also: Netflix Confirms Details On The Obamas' First Scripted Series From Higher Ground Productions
Netflix announced last week that it will report its second-quarter financial results on July 19.
NFLX Price Action: Netflix has traded between $700.98 and $162.71 over a 52-week period.
The stock was down 2.64% at $170.87 at press time, according to data from Benzinga Pro.
Photo: Andrés Rodríguez from Pixabay.
