Netflix downgraded ahead of earnings on 'full' 24 expectations: 4 big analyst cuts

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Investing.com — Here is your Pro Recap of the biggest analyst cuts you may have missed since yesterday: downgrades at Netflix, Fortinet , Tractor Supply Company , and JD.com.

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Netflix (NASDAQ:NFLX) shares fell more than 2% pre-market today after Wolfe Research downgraded the company to Peerperform from Outperform, as reported in real-time on InvestingPro.

“2024 ARPU expectations look full, while today's paid-sharing net adds lead to tomorrow's gross add shortfalls,” the analysts commented.

While Netflix has been expanding its share of the global premium video revenue, the analysts flag 2024-2025 growth forecasts as too optimistic.

“If future growth falls short, we doubt that NFLX's 50% P/E and 70% EV/EBITDA premium to the S&P would hold up,” added Wolfe.

The company is set to report its Q3/23 earnings on Oct 18.

Fortinet (NASDAQ:FTNT) shares fell more than 3% pre-market today after Barclays downgraded the company to Equalweight from Overweight and cut its price target to $63.00 from $71.00.

This decision follows the analysts’ checks that sound incrementally negative for Q3, decreased emphasis on firewall refresh as a spending priority in their CIO survey, and potential valuation declines due to the cyclical slowdown in firewall and timeline to catch up to leading vendors in the SASE market.

“Longer term, we like FTNT's platform approach and think the stock has terminal value, but we see a balanced risk/reward which underpins our Equal Weight rating,” added the analysts.

Oppenheimer downgraded Tractor Supply Company (NASDAQ:TSCO) to Perform from Outperform and cut its price target to $210.00 from $280.00.

While Tractor Supply offers