Netflix shares fell sharply on Friday after the streaming giant's third-quarter revenue outlook missed expectations and management offered little to reassure investors about slowing growth. Bank of America senior media analyst Jessica Reif Ehrlich described the company as being in 'no man's land,' saying the report lacked catalysts for bulls while giving ammunition to bears. She suggested an acquisition, such as the soon-to-be spun-off NBCUniversal, could provide a growth spark. LightShed Partners analyst Rich Greenfield said investors believe Netflix has gone ex-growth and have no patience for the company. William Blair analysts noted that Netflix has sustained price increases with industry-leading retention and could benefit from live sports monetization, paid sharing, and its ad business, though they acknowledged no near-term catalyst exists.
Netflix IncNetflix's Q3 revenue outlook missed expectations, leading to a sharp share price decline.
Bank of America Corp