Netflix (NASDAQ:NFLX) fell Tuesday following a downgrade from Needham, which has already expressed its concern the streaming service would start bleeding subscribers as new rivals gain traction.
Needham cut the stock to underperform from hold.
Shares fell 1.5% in midday trading.
Netflix (NASDAQ:NFLX) needs “a second, lower priced, service to compete with Disney+, Apple+, Hulu, CBS All Access and Peacock,” analyst Laura Martin wrote.
The new tier would have to have advertising to offset revenue losses, but Netflix (NASDAQ:NFLX) is committed to remaining ad free, which is a key reason for the downgrade, Graham said.
