NFLX stock is being watched as Netflix announces layoffs
- Netflix (NASDAQ:NFLX) is laying off around 150 of its employees
- The company is cutting costs as its growth slows
- Two well-known investment firms have sold all of their NFLX shares in the past few months
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Netflix (NASDAQ:NFLX) stock is likely to be on many investors’ radars after the company announced yesterday that it is laying off about 150 of its employees. In addition, two well-known investment firms have sold all of their NFLX shares.
The layoffs and sale of Netflix shares come after the company reported lower-than-expected first-quarter revenue and unexpectedly said its user base shrank in the first quarter. Netflix expects its user base to decline significantly again in the current quarter.
On the bright side, a research firm upgraded shares earlier this week.
In a statement to CNBC, A Netflix spokesman explained that the company is making the layoffs because it needs to cut costs as its business slows. However, the streaming company is laying off less than 2% of its workforce.
Corresponding The edgeNetflix is also eliminating “at least 26 contractors working on the company’s fan-focused Tudum website, which serves as a complement to Netflix’s content.”
2 investment firms have sold their NFLX shares
Tigers global, led by billionaire Chase Coleman, sold all of its shares in Netflix last quarter. and Pershing Square Capital ManagementControlled by well-known billionaire Bill Ackman, it sold off all 3.1 million shares of NFLX stock and suffered a huge loss of around $435 million on the investment.
Wedbush updated Netflix
On May 16, research firm Wedbush upgraded its rating on the stock to outperform from neutral. The company believes that upcoming episode releases could result in Netflix’s Q2 results beating expectations. Wedbush has a price target of $280 on the name.
At the time of publication, Larry Ramer held no position (neither directly nor indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com’s publicity guidelines.
