Investors might want to avoid Netflix after the video company lowered its third-quarter forecast for U.S. subscribers, Janney Montgomery Scott analyst Tony Wible told CNBC Thursday.
"Netflix’s management is generally regarded as the smartest guys in the room, and the fact that they put out guidance and had to lower those expectations suggests they didn’t even fully have their arms around this," he said.
"I’d argue here that management is selling shares at an aggressive pace and the CEO doesn't even own shares directly," he said. "There’s a strong signal here that this is a model that people shouldn't be buying into."