There’s more bad news on the horizon for Netflix.
Shares of Netflix fell more than 6 percent in trading Monday after an analyst downgraded shares of the left-wing, streaming entertainment company, saying the stock could underperform the S&P 500 for the remainder of the year.
CFRA analyst Kenneth Leon advised his clients to sell their Netflix shares, noting the stock has climbed about 40 percent since its July lows, and is thus unlikely to rise much higher. He also noted that Netflix’s new ad-supported tier won’t roll out until next year.
Netflix is hoping commercials will provide the course correction the company needs when the new service rolls out in early 2023. But as Breitbart News reported, the Biden recession is causing a significant slowdown in ad spending that is already hurting other streamers, including Roku and YouTube.
Netflix shares are down more than 60 percent so far this year following an unprecedented exodus of subscribers. Last quarter saw the streamer lose a record 1 million customers, on top of the 200,000 it lost the previous quarter.
As a result, executives have begun reining in the company’s famously profligate ways. The company has laid off hundreds of employees and has promised to cut spending on content, with budgets on new shows being slashed by as much as 25 percent.
Netflix still has a production deal with Barack and Michelle Obama, under which the former first couple continues to produce documentaries as well as scripted content.
Co-CEOs Reed Hastings and Ted Sarandos rank among Hollywood’s most active Democrat donors, funneling millions of dollars into the campaigns of far-left candidates, including those of President Joe Biden (D) and California Gov. Gavin Newsom (D).
Follow David Ng on Twitter @HeyItsDavidNg. Have a tip? Contact me at dng@breitbart.com
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