What's Going On With Netflix Stock Monday?

Netflix Inc (NASDAQ:NFLX) shares are trading lower Monday as several analysts weigh in on the entertainment giant ahead of earnings next week. Much of the weakness appears to be due to a downgrade from Barclays.

What Happened: Barclays analyst Kannan Venkateshwar downgraded Netflix from Equal-Weight to Underweight on Monday and maintained a price target of $550, citing valuation concerns.

Venkateshwar’s downgrade is built on the idea that Netflix has had to lean into new growth drivers more heavily in recent years in order to keep revenue growth in the double digits. The Barclays analyst believes this growth push, which includes things like paid sharing, has likely pulled forward future growth.

“Even with these levers, growth is slowing and every lever now has corresponding trade-offs,” Venkateshwar said in a new note to clients.

The Barclays analyst believes ...

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