Netflix Stock Falls as Citi Cuts Rating on ‘Lofty’ Expectations

Netflix Stock Falls as Citi Cuts Rating on ‘Lofty’ Expectations

Netflix (NFLX) shares experienced a 2% drop in pre-market trade after Citi strategists downgraded the streaming giant’s rating from Buy to Neutral. The analysts cited concerns about “lofty expectations” for Netflix in both 2024 and 2025. These expectations include accelerating revenue growth, expansion of EBIT margin, controlled increases in content spending, robust free cash flow (FCF), and significant share repurchases. Citi analysts believe that these high expectations have contributed to the stock’s downgrade.