Netflix‘s stock price could plummet nearly $200 per share within the next quarter or two, Wedbush Securities analyst Michael Pachter said Monday.
From video (paraphrasing): “Netflix’s stock may drop this quarter but definitely will during the next.”
Source: CNBC July 2013
“They own nothing and they’ve acquired nothing,” says analyst Michael Pachter of Wedbush Securities who raised his price target on Netflix to $80 from $65 today but kept his “sell” rating.
For the record, Factset data shows Pachter is one of nine analysts who currently rate Netflix a sell, while the remaining 75% analysts rate it either hold or buy and have a median price target of $213.
Source: Yahoo July 2013
I must admit to being a bit lazy. Much to my surprise, Pachter has not been “wrong” all along while waiting to be “right” on NFLX. I fell into a trap of relying on less-than-informative sources to provide information I should have sought on my own.
For the record, Pachter did not ask me to write this article. I am doing so because I want to. And because I think the guy deserves a fair shake.* Pachter simply emailed me two of his past reports on NFLX, noting that he has not always had a sell rating on the stock. Really, though, it’s about more than one analyst. It’s about an attempt to provide investors with more than drive-by reporting. Some, particularly bulls, argue that I write about NFLX so much because I want to take it down and profit. First of all, I have only been short the stock one time, via puts. And, second of all, I don’t think I have power to take it down even if I wanted to. Truthfully, I think it’s an interesting story and, based on the debate here and elsewhere, others feel the same way. There’s nothing better than being even a small part of an interesting story.
Source: Seeking Alpha writer attempting to defend Pachter. May 2011
Source: StreetInsider.com story with headline: “Netflix Could be Biggest Loser Following Net Netruality Decision- Analyst” January 15, 2014
Headline: Netflix Soars To All Time High After Hours On Small Beat; Unfazed By Net Neutrality