Analyst Update: GameStop Corp., Netflix, Inc., and MaxPoint Interactive Inc

Analysts adjusted their ratings on GameStop Corp. (GME), Netflix, Inc. (NFLX), and MaxPoint Interactive Inc (MXPT)

by Kirra Fedyszyn

Published on Nov 13, 2015 at 12:42 PM
Updated on Nov 13, 2015 at 1:47 PM

Analysts are weighing in today on gaming retailer GameStop Corp. (NYSE:GME), Internet streaming service Netflix, Inc. (NASDAQ:NFLX), and software interest MaxPoint Interactive Inc (NYSE:MXPT). Here's a quick roundup of today's brokerage notes on GME, NFLX, and MXPT.

  • GME is falling hard, after Pacific Crest downgraded the stock to "sector weight" from "overweight," and said it's not a "high-growth opportunity" as sellers increasingly distribute via digital download. GameStop Corp. was last seen trading at $37.95, down 14.8% -- earning a spot on the short-sale restricted (SSR) list. GME is now set for its lowest close since April, but existing short sellers should be happy with the development, as 45.4% of the stock's float is currently sold short -- which would take a whopping seven-and-a-half weeks to buy back, at GME's typical trading volumes. Meanwhile, 10 of 14 analysts following the security maintain a "buy" or better rating, leaving plenty of room for further losses if more downgrades occur.

  • NFLX is down 2.3% today, last seen trading at $106.45, in spite of a price-target hike to $121 from $110 at Citigroup. On top of broad-market headwinds, the shares are likely slumping on the news that competitor service Hulu is considering selling a stake to Time Warner Inc. (NYSE:TWX). Still, Netflix, Inc. has enjoyed an outstanding year on the charts, adding 117% so far in 2015. It's no surprise that analysts have a generally bullish outlook, with 17 of 28 firms following NFLX giving it a "buy" or better rating. While short sellers have lately plagued the streaming giant – more than 10% of the stock's available float is still sold short – options traders haven't been more optimistic during the past year. The security's 10-day call/put volume ratio on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) stands at an annual high of 1.82. 

  • MXPT is the top percentage loser on the Big Board thus far, down 49.5% at $2.51. Earlier, the shares hit an all-time low of $2.36, after MaxPoint Interactive Inc issued lackluster current-quarter revenue guidance. As such, Needham downgraded MXPT to "hold" from "buy," while Deutsche Bank sliced its price target by $2 to $6. As with GME, MXPT has been relegated to the SSR list, but existing short sellers are likely jumping for joy. Short interest represents nearly eight sessions' worth of pent-up buying demand, at MXPT's average pace of trading.

For other stocks in analysts' crosshairs, read Analyst Upgrades: Yelp Inc, Wendys Co, and Toll Brothers Inc and Analyst Downgrades: Cisco Systems, Inc., Fossil Group Inc, and Nordstrom, Inc.

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