The warning signs were there, with influential Wall Street observer Michael Nathanson one week ago cutting his price target as increased OTT competition and slowing growth made Netflix a little less rosy of an investment.
It turns out Nathanson was right on the money with respect to Netflix’s overall health. Disappointing earnings and subscriber forecast misses were seen by the visual entertainment giant, leading to a Friday sell-off that saw NFLX down by more than 21% in the 1pm Eastern hour.
Yet, there’s dissent among just how poorly Netflix is performing. According to one industry observer, “Netflix’s performance is superb when you consider the crushing competition encroaching on what used to be a fast growing, greenfield market.”