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Netflix CEO Reed Hastings tried to paint a pretty picture on the numbers, saying that the company remains on target for future growth. But it appears that many Wall Street analysts (and investors) didn't buy it because they concluded weeks ago that Netflix is in trouble. The second quarter sub warning only confirmed their suspicions, which led to the stock tanking on Tuesday.
Netflix's stock this week has now dropped 18 percent (it fell four percent on Monday prior to the release of the first quarter report). It may rebound somewhat this week with some traders looking for bargains. But the once alarmist forecast by Wedbush analyst Michael Pachter that Netflix's stock will fall to $45 in the next year is now looking more than possible.
With Netflix trading over $100 at the beginning of the week, $45 would represent more than a 50 percent drop.
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