Netflix shares tumbled most since 2014 in flurry of downgrades

Netflix shares tumbled by the most since October 2014 as analysts downgraded the streaming giant.

| Updated on: Aug 21 2022, 23:31 IST
This image released by Netflix shows Laura Marano in a scene from "The Royal Treatment." (AP)
This image released by Netflix shows Laura Marano in a scene from "The Royal Treatment." (AP)

Netflix shares tumbled by the most since October 2014 as analysts downgraded the streaming giant after it gave an outlook for subscriber additions that fell short of Wall Street's expectations. The selloff of as much as 25% on Friday dragged the stock to the lowest level since April 2020. At least nine firms tracked by Bloomberg cut their recommendation on the stock after Netflix forecast adding just 2.5 million customers in the first quarter, compared with analysts' expectations for 6.26 million additions. 

Intensifying competition is becoming a “bigger problem now” for Netflix, Macquarie analyst Tim Nollen said in a report, downgrading the stock to a sell-equivalent rating. The subscriber outlook is disappointing, and contributes to an uncertain outlook, he said.

Post-earnings slumps aren't new for Netflix investors, but Friday's drop is set to be the ugliest share-price reaction in the session following results since after its second-quarter report in 2012, according to data compiled by Bloomberg. Shares have advanced on the day after earnings just twice out of the past 12 quarters, excluding the most recent quarter, data compiled by Bloomberg show.

In a contrarian move, long-time bear Benchmark Co. upgraded Netflix., saying the selloff appeared overdone. Netflix's consensus rating -- a proxy for its ratio of buy, hold and sell ratings -- now stands at 3.96 out of five, down from 4.27 at the start of the week.

With Friday's slump, Netflix shares are down more than 30% in January, which is on track to be the stock's worst month since September 2011. Netflix shares have come under pressure in recent weeks alongside technology stocks broadly with the surge in Treasury yields.

'Iron Chef' reboot in works at Netflix

(ANI): Netflix has ordered a reboot on the iconic culinary competition 'Iron Chef'.

The Hollywood Reporter confirmed the news that the streamer's take on the cooking competition will be titled 'Iron Chef: Quest for an Iron Legend.'

The show is also billed as a supersized take on the basic cable classic.

The official description obtained by The Hollywood Reporter reads, "The legendary Iron Chef series is reborn with a supersized approach to the ground-breaking culinary competition that started it all. It's been called the toughest culinary challenge a chef will ever experience. This is where world-class cuisine meets high-octane sports. Five new trailblazing Iron Chefs will welcome brave Challenger Chefs to the reimagined Kitchen Stadium, where they'll face off and be pushed to the limits of endurance and creativity, as they cook up extraordinary culinary creations. The competition's most successful Challenger will return to battle in a grand finale for the chance to be named the first-ever 'Iron Legend.'"

'Iron Chef' originally premiered in Japan in 1993 and Food Network picked up the series in 1999. The series arguably launched the cooking competition reality show genre, with successors that included 'Bravo's Top Chef' (2006) and 'Fox's Hell's Kitchen' (2005).

Eight episodes have been ordered of the new series from Keller Productions, in association with 3 Ball Productions, with Eytan Keller, Daniel Calin and Ross Weintraub serving as executive producers.

'Iron Chef: Quest for an Iron Legend' will premiere later in 2022.

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First Published Date: 21 Jan, 23:54 IST