Video-streaming service Netflix, Inc. (NFLX) saw its stock decline in pre-market trading on Monday after getting a bearish report from Needham on rising growth risks following Brexit.
Needham analyst Laura Martini downgraded NFLX to ‘Hold’ from ‘Buy’, saying they worry the U.K.’s Brexit adds fundamental risk to Nerflix since a decelerating UK and EU GDP growth over the next 12-24 months will slow the company’s subscriber growth or accelerate its churn rates. The analyst also cited the possibility of a negative currency risk impact on the company’s financial performance and the EU proposed legal changes that would force Netflix to fund European-made films, which will bring higher costs.
Netflix shares lost 1.6% to $95.15 pre-market. The stock is above its 50-day moving average, but is still below its 200-day line. In the past 52 weeks, NFLX has traded between a low of $79.95 and a high of $133.27, with the 50-day MA and 200-day MA located at $94.60 and $98.91 levels, respectively. Additionally, shares of Netflix trade at a P/E ratio of 15.91 and have a Relative Strength Index (RSI) and MACD indicator of 57.12 and +1.23, respectively.
Netflix currently prints a one year return of 2.79%, and a year-to-date loss of 15.48%.