David Jackson

Pacific Growth Raises Netflix Estimates - Belatedly? (NFLX)

The key question is whether the sell-side ratings reflect money still sitting on the sidelines or whether so much buy-side cash has already moved into the stock that the sell-side analysts are merely a lagging indicator of sentiment changes that have already happened.

What interests me here is that the sell-side is generally bad at guaging investor sentiment. Most sell-side initiation of coverage reports don't even attempt to assess the current sentiment in a stock, and often present a thesis that is already 'priced-in" as though it's new information. Looking only at other sell-side analysts' ratings seems to be a very limited sentiment guage.