Why Netflix Stock Dropped Today

Shares of Netflix (NASDAQ: NFLX) fell on Friday, following bearish analyst remarks. By the close of trading, the streaming leader's stock price was down more than 5%.

Goldman Sachs analyst Eric Sheridan placed a sell rating on Netflix's shares. He also slashed his price forecast from $265 to $186, in part because of what he views as worsening economic trends.

Sheridan is worried that the U.S. economy could soon fall into a recession. That could drive people to pull back on spending, such as by pairing back their streaming subscriptions. Netflix might find it harder to add subscribers in this scenario, while also losing more customers to cancelations.

Source Fool.com