ZNGA - Netflix sells off again post-earnings down 4% but analysts see blue skies

Netflix (NFLX) is taking its biggest one-day hit in months, down 3.8% after another earnings report focused on the company's post-lockdowns user-growth challenge. Subscriber additions of 1.54M topped the company's fairly lowball guidance for 1.12M, but a forecast for 3.5M net adds in the current quarter is again short of observers' expectations for 5.86M. The company says its "choppiness" in COVID-19 effects should resolve by year-end, as should production hitches from the pandemic. And just as with last quarter, analysts are less concerned than Mr. Market. KeyBanc trimmed its price target a mere $5 to $645 - "only" 26% upside implied. Worries about operating expansion will moderate, it says, with attention shifting to EPS growth and free cash flow. Wells Fargo is staying heavily upbeat, with a $700 price target suggesting 37% upside in the stock. The company has shifted to a period of relative predictability supported by strong EPS

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Netflix sells off again post-earnings, down 4%, but analysts see blue skies