Boston, MA 06\/26\/2013 (wallstreetpr) –\u00a0Netflix Inc., (NASDAQ:NFLX) once the top 500 S&P stock of 2013, has now been given an underperform rating of with target price of $180 by Sanford Bernstein on the backdrop of China\u2019s economy suffering a setback, which according to analysts is the reason for such downgrading. Also as per Analysts \u201cIts current valuation reflects unrealistic expectations across all major economic levers of the business.\u201d Shares of Netflix Inc (NASDAQ:NFLX) closed down by 1.25% to close at $212.90.<\/p>\n
Overall, Netflix had a good start this week, soon after it announced its collaboration with Dreamworks Animation Skg Inc. (NASDAQ:DWA), along with announcing in a separate news that it will expand its market in Netherlands for providing leading video services.<\/p>\n
The deal with DreamWorks can be said to have come at an important time. Many young families who have been lamenting ever since Nick Jr. and Nickelodeon were removed from Netflix\u2019s platform late last month are now provided with a solution. By teaming with Dreamworks, Netflix will be offering 300 hours of original programming, primarily in the form of new shows, which shall be based on its growing set of characters. This will enable to not only capture its lost market, but expand it to new users through new faces, which shall be a reason for young viewers to keep checking out Netflix by next year.<\/p>\n
The major problem which subscribers should understand is that unlike optical discs, streaming licenses do not last forever. This is the reason why shows go on and off air more often. But this strategy of Netflix would make it up for its subscribers when one show or the other leaves its digital vault. This move helps it sustain its market share in this highly competitive segment, wherein viewers are very choosy and can easily switch their viewing options.<\/p>\n
Netflix\u2019s other big move to expand into Netherlands also makes sense.\u00a0 Although Netflix has secured more than 6 million subscribers outside the United States for its streaming services, it is still losing a lot of money when it comes to overseas operations. However, its international operating loss narrowed in its latest quarter to the lowest that the company has seen in more than the past year. Such move to venture into Netherlands can only be seen to further reduce such operating loss figure to a profit one.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 06\/26\/2013 (wallstreetpr) –\u00a0Netflix Inc., (NASDAQ:NFLX) once the top 500 S&P stock of 2013, has now been given an underperform rating of with target […]<\/p>\n","protected":false},"author":3,"featured_media":7980,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[2236],"tags":[2734,2735,1385,2128],"stock_ticker":[],"class_list":["post-7978","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-dreamworks-animation-skg-inc-nasdaqdwa","tag-nasdaqdwa","tag-nasdaqnflx","tag-netflix-inc-nasdaqnflx","entry"],"acf":[],"yoast_head":"\n