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Netflix CEO Reed Hastings is pictured on May 3, 2018 in Lille, northern France during the first edition of the TV Series Mania festival.
Netflix shares slipped in premarket trading Wednesday as SunTrust Robinson Humphrey analyst Matthew Thornton says the streaming giant added less subscribers than expected last quarter.
“Our Subscriber Tracker, through November, is pointing to 4Q sub adds slightly below consensus,” Thornton said. “We’re lowering our year-end 2019 price target … to reflect higher interest/discount rates and lower comparable multiples.”
Netflix shares fell 1.9 percent in premarket trading from Monday’s close of $267.66 a share. The widely traded member of the famous ‘FANG’ tech basket lost 28 percent last quarter as investors bailed on momentum stocks amid a broader market sell-off. The stock still managed to finish the year up more than 30 percent.
SunTrust lowered its price target to $355 a share from $410 a share.