Streaming giant Netflix (NFLX) has seen a spike in subscription cancellations after co-founder Reed Hastings publicly endorsed Kamala Harris for president.
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Hastings declared his support for current vice-president Harris and that led to what media reports called “…the single worst day for cancellations this year.” Netflix was already reeling from wave of cancellations this summer after it dropped its basic service tier.
Insult to injury, Hastings also announced a donation of $7 million to The Republican Accountability PAC, which feels roughly the same way about Donald Trump as trees feel about forest fires. Consequently, Netflix subscriptions were canceled hard and fast, and many of the canceling subscribers took to social media to declare their distaste for Hastings’ political leanings.
Baby Reindeer Going to Trial
Netflix also lost ground in a court case connected to one of its big hits, “Baby Reindeer.” The judge in the case found that Netflix could have defamed Fiona Harvey, who was the basis for a character on the show.
Netflix’s use of the phrase “based on a true story” with Baby Reindeer did not help its case as the judge ruled the company acted with a “…reckless disregard of whether the statements in the series were false.”
Is Netflix Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on NFLX stock based on 25 Buy, 12 Hold and one Sell recommendation assigned in the past three months, as indicated by the graphic below. After a 85.81% rally in its share price over the past year, the average NFLX price target of $713 per share implies 0.94% upside potential.
