Wall Street brokerages stuck to a positive outlook on Netflix on Thursday, betting that a strong content slate for the rest of 2019 would reverse shock second-quarter losses in U.S. subscribers that sank its stock price, reports Reuters.
Netflix shares fell about 11% on worries about its earnings report on Wednesday that showed lower-than-expected global growth and signs of trouble in its U.S. base ahead of Walt Disney much-awaited launch of a rival service later this year.
Netflix, whose price-to-earnings ratio is by far the largest of the five big U.S. tech companies making up the so-called FAANG group, has quadrupled in value since 2015 but at $321 per share is down $100 from 2018 peaks. The other FAANG companies are Facebook, Amazon.com Inc, Apple and Alphabet.
The April-to-June period tends to be seasonally weak for Netflix in the United States, where warmer weather and longer days keep viewers outdoors.
