After another Wall Street analyst warned that the stock could struggle for the rest of the year, shares of the streaming giant tanked over six percent to start the week.
Another Wall Street analyst recently warned of further declines in the stock.
One of the worst performing stocks in the S&P 500 on Monday was Netflix, which fell more than six percent to $226 per share.
Kenneth Leon, Research Director at CFRA Research, said that after realizing gains of more than 40% since hitting a low point in July, the rest of the market is likely to under perform.
He lowered his recommendation on the stock from a "hold" to a "sell" in a recent note to clients and slashed his price target by $7 to $238 per share.
New ad-pay subscription plans may not be visible until 2023, but it could help revive flat to lower subscriber growth this year.
The CFRA analyst predicts that metrics like operating and free cash flow will improve, despite the fact that they were low in the most recent quarter.
The stock has lost more than 60 percent of its value this year as the company has slowed subscriber growth and faces increased competition.
Less than a third of Wall Street analysts still have a "buy" rating on the stock, which is less than a year ago. Over the last six months, hedge funds have been net buyers of the stock, while most other groups have been sellers. FactSet data shows that investment advisers and private wealth managers have been net-sellers.
As stay-at- home measures boosted growth, Netflix was one of 2020's stock darlings. The stock market rebounded from its low point on June 16 and has been one of the best performers in the S&P 500. Since then, the streaming giant's shares have doubled in value, compared to the benchmark index's 15% gain. The recent market rally has started to fade as the recent sessions have begun. On Monday, the stock market fell due to a decline in tech stocks and warnings from analysts that the recent bear market rally is grinding to a halt.
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