Analyst Downgrades: Netflix, Inc., Amazon.com, Inc., and Pandora Media Inc

Analysts downwardly revised their ratings and price targets on Netflix, Inc. (NFLX), Amazon.com, Inc. (AMZN), and Pandora Media Inc (P)

by Kirra Fedyszyn

Published on Jan 4, 2016 at 9:45 AM
Updated on Jun 24, 2020 at 10:16 AM

Analysts are weighing in on Internet giants Netflix, Inc. (NASDAQ:NFLX), Amazon.com, Inc. (NASDAQ:AMZN), and Pandora Media Inc (NYSE:P)Here's a quick roundup of today's bearish brokerage notes on NFLX, AMZN, and P.

  • NFLX is trading 4.7% lower at $109.06, after Baird downgraded the stock to "neutral," and cut its price target to $115 from $128. Netflix, Inc. surged more than 134% in 2015, hitting an all-time high of $133.27 in early December. Out of 27 analysts following the stock, 17 still rate it a "buy" or better. And option traders are looking for more upside, too. On the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), NFLX has a 50-day call/put volume ratio of 1.35 -- indicating an appetite for call buying, relative to put buying, that outranks 90% of readings from the past year.
  • AMZN is down 3.4% this morning at $653.24, as Monness Crespi Hardt downgraded the stock to "neutral" from "buy." Amazon.com, Inc. hit a new all-time high of $696.44 just last week, and more than doubled in value during 2015. Of the 30 brokerages provided coverage on the equity, 83% say it is a "buy" or better, and traders seem to agree. Specifically, short interest on AMZN fell more than 27% during the last two reporting periods, and now represents just over 1% of the stock's available float.
  • P is off 5.6% at $12.66, thanks to a downgrade to "neutral" from "buy" at Suntrust Robinson, which also cut its price target on Pandora Media Inc to $15 from $18. In addition, Barron's said P shares could be screaming "Help!" in 2016, and drop another 20% amid competition woes. The security surrendered nearly one-fourth of its value last year, due in large part to the disappointing fourth-quarter guidance reported in October. Analysts are currently split evenly between "buy" and "hold" ratings, and more than 16% of the stock's available float is sold short -- a 29% increase over the last two reporting periods. But near-term option traders are the outlier, as P's Schaeffer's put/call open interest ratio (SOIR) of 0.40 is two percentage points from an annual low -- meaning that, among options expiring in the next three months, calls are outnumbering puts to a degree rarely seen in the last 52 weeks.

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