- Citing the recent slowdown in the U.S. streaming sub growth (as shown by the company's Q3 numbers), Stifel's Scott Devitt has downgraded Netflix (NASDAQ:NFLX) to Hold.
- Devitt: "We view risk / reward as balanced at current prices. We also view shares as more attractive in the low-$300 range until we gain more clarity on domestic subscriber growth trajectory, all else being equal."
- He maintains a positive long-term stance on Netflix due to expectations for international success, but thinks U.S. growth concerns will remain a near-term overhang.
- Separately, Reed Hastings stated in Mexico City yesterday Netflix's Latin American ops now have ~5M subs (out of a global base of 53M), and aren't yet profitable. Hastings also admitted pirated content remains a challenge for Netflix in the region.