The Business Roundtable said its members forecast that growth this year will clock in at 2.3%, down from last quarter's estimate of 2.6%.Politicsread more
Activists with Black Lives Matter, who met privately with Buttigieg in the weeks after police shot and killed Eric Logan, say the 37-year-old mayor brushed off their concerns...2020 Electionsread more
Wall Street economists think the Fed will cut rates by 25 basis points at its September meeting but have differing views about what will happen in the future.Marketsread more
Trump said he "is revoking" a federal waiver that allowed the state to craft its own rules on greenhouse gas emissions from vehicles.Politicsread more
The unspecified action comes after the U.S. accused Iran of carrying out the weekend attacks on critical Saudi oil installations.Politicsread more
As the Fed was meeting to consider cutting interest rates, it lost control of the very benchmark rate that it manages.Market Insiderread more
Drone and missile debris recovered by investigators at the Saudi Aramco attack site is proof of Iranian culpability, a Saudi defense ministry representative told media on...World Politicsread more
Four Wall Street firms downgraded FedEx after the company's poor earnings report.Marketsread more
Some worry the regulators will squander an opportunity to crack down on potentially monopolistic behavior due to their own infighting.Technologyread more
FedEx CEO Fred Smith is "basically implying that we're going to import" a global slowdown," says CNBC's Jim Cramer.Investingread more
Oil prices retreated after President Donald Trump said he ordered the Treasury Department to "substantially increase" sanctions on Iran.Energy Commoditiesread more
Netflix’s stunning rally so far this year may be due for a breather, according to Deutsche Bank.
The firm told its clients Thursday the internet video streaming giant could miss Wall Street’s second-quarter subscriber expectations next week.
Netflix shares are the second best-performing member of the S&P 500 this year. It's up 115 percent year to date through Thursday versus the market’s 5 percent return.
“We see limited upside and even some downside to 2Q guidance/consensus,” analyst Bryan Kraft said in the report Thursday. “We don't see 2Q earnings as a positive catalyst for the stock; in fact, we see some near term downside risk.”
The company's stock fell more than 4 percent Friday.
The analyst predicts Netflix’s second-quarter global net subscriber additions will be within a range of 1 million below to 500,000 above the Wall Street consensus. He estimates US net member additions will either match analyst’s expectations or miss by up to 500,000 subscribers for the same quarter.
Kraft said with Netflix shares up so dramatically this year there is potential for weak performance next week.
“The stock has doubled this year, and added another $50B of market capitalization over the past quarter. Without meaningful positive estimate revisions, or 3Q subscriber guidance coming in ahead of expectations, it seems unlikely that the stock will move higher next week," he said. “The stock might see a pull back in the short term (i.e. next week), but we see significant long term, multiyear value creation ahead.”
As a result, Kraft reiterated his buy rating and $360 price target for Netflix shares. The stock closed at $413.50 Thursday.
Netflix declined to comment. The company is slated to report its second-quarter earnings results Monday.
On Wednesday UBS lowered its rating to neutral from buy for Netflix shares, citing the internet company’s high valuation.