Netflix Plunges Despite Bullish Report By MKM Partners

Shares of Netflix, Inc. (NASDAQ: NFLX) closed lower by 6.8 percent at $91.15 on Wednesday. The last time shares of Netflix traded below the $90 per share mark was back in July 2015.

$SPY, $NFLX today... and probably a few traders, too pic.twitter.com/6Qw21i1xNJ

— Zach Hurwitz (@ZachHurwitz) January 27, 2016

Investors and traders heavily sold Netflix's stock despite the release of a bullish analyst report by MKM Partners' Rob Sanderson. The analyst acknowledged that while the current macro environment represents a "challenging" period for the stock, its fundamentals and long-term earnings power potential should support a multiple expansion.

Related Link: Sanderson: Netflix 'Outstanding' Opportunity Despite Macro Weakness

Sanderson maintained a Buy rating and $145 price target on Netflix's stock.

On the other hand, investors and traders are still reacting to a report that Amazon.com, Inc. (NASDAQ: AMZN)'s Prime Video streaming service boasts more subscribers compared to Netflix's user base.