Netflix stock declines after CFRA downgrade

Netflix Inc. stock fell more than 2 percent in pre-market trading Monday as CFRA analyst Kenneth Leon downgraded the stock to sell from hold.

“Netflix’s stock is up 40 percent from its July low, but it could lag the S&P 500 for the balance of the year.” Leon highlighted.

“In Q2 2022, NFLX realized only $103 million in operating cash flow and $13 million in free-cash flow,” Leon posted.

These procedures should enhance, but we are confident EBITDA income before interest, taxes, depreciation, and amortization and EPS (earnings per share) will be lower in the second half of the year in comparison with the first-half results, according to Leon.

Leon added that a forthcoming advertising level of the service could help restore subscriber growth, although this catalyst is improbable to play out until next year.