© Reuters. 5 Internet Stocks Downgraded by Goldman Sachs Today
By Senad Karaahmetovic
Goldman Sachs analyst Eric Sheridan cut ratings on the five companies in the firm’s Internet research coverage.
The analyst downgraded shares of Goodrx (NASDAQ:) to Neutral from Buy, as well as Netflix (NASDAQ:), Roblox (NYSE:), Frontdoor (NASDAQ:), and eBay (NASDAQ:) to Sell from Neutral.
On Netflix, the analyst has concerns “around the impact of a consumer recession as well as heightened levels of competition on demand trends (both in the form of gross adds and churn), margin expansion, & levels of content spend and view NFLX as a show-me story with a light catalyst path in the next 6-12 months.”
The price target on Netflix stock goes to $186.00 from $265.00.
Sheridan’s concerns about Roblox are tied to the post-pandemic environment. The analyst expects “a continuation of slowing growth, tough comps, & normalization of margins in the near-term and as such.” Roblox price target is cut to $28.00 per share from $39.00.
Goldman Sachs analyst also reiterated Sell ratings on Airbnb (NASDAQ:) and UbiSoft (OTC:).
On the other hand, Sheridan and his colleagues are more positive about Amazon (NASDAQ:), Uber (NYSE:), Meta Platforms (NASDAQ:), and Alphabet (NASDAQ:). The analyst also reiterated Buy ratings on IAC/InterActiveCorp (NASDAQ:), ANGI (NASDAQ:), Match Group (NASDAQ:), and Bumble (NASDAQ:).
Amazon is again reiterated as a Top Pick for 2022.
“We view current levels as fully reflective of investor concerns on both revenues & profitability into 2022 & view AMZN exposed to a number of broader secular growth themes,” Sheridan commented.
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