HSBC downgraded Netflix shares to Hold from Buy. The bank slashed its price target from $96 to $76. Analysts cited intensifying competition from YouTube as the primary driver for the move.
YouTube captured a record 14.2% of U.S. TV viewing time in July. Netflix’s share of TV viewing fell to a multi-year low of 7.8% during the same period.
This marks the second downgrade for Netflix in a single week. The rating change follows a similar move by Wells Fargo.