Netflix shares slip as investors pull back from rally; Susquehanna, Kaufman downgrade stock

Netflix slips as investors pull back from rally

NEW YORK — Shares of Netflix Inc. slipped Wednesday, with investors pulling back after a surge in the stock’s price over the past month.

Shares fell $1.60, or 2.3 percent, to $67.38 in morning trading.

“At the current levels, we believe many of the positive attributes of the (Netflix) story are now better appreciated by investors,” Marianne Wolk, an analyst with the Susquehanna Financial Group, told investors in a note Wednesday.

Wolk downgraded the stock to “Neutral” from “Positive.”

Netflix has been on a tear since its fourth-quarter earnings came out at the end of January. The popularity of its mail-order DVD rentals and streaming online movie service has boosted the company’s profits through the recession.

It expects to add another 1.2 million to 1.5 million customers this year, which will bring the total to between 15.5 million and 16.3 million subscribers. The company hopes a new deal to put its service on the Nintendo Wii will help build momentum.

From a closing price of $50.97 on Jan. 27, the company’s stock has charged ahead more than 35 percent, closing Tuesday at $68.98.

The spike also prompted Aaron Kessler, of Kaufman Bros., to lower the stock’s rating Wednesday. He cut the company to “Hold” from “Buy.”