Netflix shares down again, set new 52-week low
The market isn't buying Netflix's story that everything is right with company's direction.
Shares of video-rental service Netflix fell 5 percent in early trading this morning to $56.81.
The company is now trading well below its previous 52-week low, following a collapse in the stock price yesterday when shares fell 25 percent. The company warned in its second-quarter earnings report this week that it might report a loss in the fourth quarter and also might not add as many subscribers as it had expected.
A host of analysts downgraded the stock yesterday and Consumer Reports reported that Netflix's service didn't fare particularly well in a consumer-satisfaction survey.
Though Consumer Reports, a respected magazine operated by a non-profit consumer rights group, found a lot of respondents used Netflix's streaming service, researchers said that in terms of providing consumer satisfaction, Netflix came in 6th place behind such services as Vudu, iTunes and Amazon.
Consumer Reports said the main complaint is one we've heard for a while now about the company's streaming library: not enough selection.