Fading stars are now attracting activists

Article Excerpt

The easing of COVID-19 restrictions has hurt the shares of stay-at-home stocks Netflix and Peloton. As a result, both companies are now dealing with activists, which should help them rebound. However, their shares will likely remain volatile over the next few months. NETFLIX INC. $398 is a hold. The company (Nasdaq symbol NFLX; Consumer sector; Shares outstanding: 444.0 million; Market cap: $176.7 billion; No dividend paid; Takeover Target Rating: Medium; www.netflix.com) is the world’s largest provider of on-demand streaming content (movies, TV shows and documentaries) with 222 million subscribers in over 190 countries. It also continues to operate a DVD-by-mail rental service in the U.S. The stock is down 43% since hitting an all-time high of $701 in November 2021. That drop is mainly because Netflix is adding fewer subscribers as COVID-19 restrictions ease. It’s also facing stronger competition from newer streaming services such as Disney+, HBO Max and Amazon Prime. For the first quarter of 2022, the company expects to add 2.5 million new subscribers, which…