Wall Street's patience with Netflix (NFLX) appears to be wearing thin.
Netflix shares plunged into the red at the opening bell on Friday as Wall Street digested a lackluster second quarter earnings report. The streaming giant's third-quarter revenue outlook missed expectations, and management offered little to reassure investors about slowing growth and engagement trends.
Analysts said the earnings report did little to ease concerns over Netflix's growth.
"At the moment, it's in no man's land," Bank of America Global Securities senior media ******* yst Jessica Reif Ehrlich told Yahoo Finance, of the company. "There's just not enough here to move the stock in any direction. There was nothing for the bulls, but there was certainly something for the bears."
One possible catalyst for the stock is an acquisition, Ehrlich told Yahoo Finance. Netflix walked away from a bidding war with Paramount Skydance (PSKY) over Warner Bros. Discovery in February. Investors could perceive a new deal that brings fresh IP through the door as a strong move for the streamer.