Analyst Downgrades: Netflix, Amazon, and Cree

Analysts downwardly revised their ratings on Netflix, Inc. (NASDAQ:NFLX), Amazon.com, Inc. (NASDAQ:AMZN), and Cree, Inc. (NASDAQ:CREE)

Jun 25, 2015 at 9:48 AM
facebook X logo linkedin


Analysts downwardly revised their ratings on streaming giant Netflix, Inc. (NASDAQ:NFLX), e-commerce concern Amazon.com, Inc. (NASDAQ:AMZN), and LED specialist Cree, Inc. (NASDAQ:CREE). Here's a quick roundup of today's bearish brokerage notes on NFLX, AMZN, and CREE.

  • It's been a big week for NFLX, after yesterday's announcement of a stock split sent the shares to a record high of $706.24. Additionally, Carl Icahn said he banked a pretty penny after selling his remaining stake in the company. Today, however, NFLX is down 2.4% at $662.14 -- bringing its year-to-date lead to 94% -- after Citigroup lowered its rating to "neutral" from "buy." Given Netflix, Inc.'s outstanding technical showing in 2015, sentiment in the options pits remains high. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity's 50-day call/put volume ratio of 1.11 ranks in the 90th annual percentile. In other words, calls have been bought to open over puts with more rapidity just 10% of the time within the past year.

  • Evercore ISI cut its outlook on AMZN to "hold" from "buy," explaining the shares -- last seen 0.9% lower at $436.92 -- are within striking distance of the brokerage firm's price target of $460. Technically speaking, the stock has had a strong year -- up 41%, and less than 4 percentage points away from taking out its April 24 all-time high of $452.65. Short-term speculators, meanwhile, have shown a preference for puts over calls, as evidenced by AMZN's Schaeffer's put/call open interest ratio (SOIR) of 1.07, which sits higher than 68% of all similar readings taken in the past year. Should Amazon.com, Inc. extend its long-term trajectory, an unwinding of these put positions could help buoy the shares. Meanwhile, on the fundamental front, the company made headlines earlier this week when it announced a big change to its smart-home/speaker device, Echo. Today, AMZN explained the mystery behind its "Treasure Truck" -- which has been circling the Seattle area.

  • CREE has given back 10.8% out of the gate to trade at $27.25 -- and earlier hit a two-year low of $27.10 -- after the company announced it will restructure its light-emitting diode (LED) division and downwardly revised its current-quarter sales outlook. Adding to the bearish bias are price-target cuts from Canaccord Genuity (to $28) and Cowen and Company (to $25), the latter of which rests in territory not seen by CREE since October 2012. It's been a fairly lackluster run for the stock in recent months, which encountered stiff resistance at the round-number $40 mark in late February and early March -- and has since lost almost 32%. Nevertheless, call buying has been popular in recent months. At the ISE, CBOE, and PHLX, Cree, Inc.'s 50-day call/put volume ratio of 1.90 rests in the 80th annual percentile.

A one-stop shop for the day's biggest headlines and more… Sign up now to get Schaeffer's Market Recap delivered straight to your inbox!
 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI