Analyst Update: GameStop, Netflix, MaxPoint

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

Nov 13, 2015 at 12:42 PM
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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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