Netflix and Amazon did very well in 2015 and were the top stocks in the S&P 500 with more than 100% growth. However, both were among the biggest losers on the first trading day of the New Year. On Monday, Netflix shares fell by almost 4%, while Amazon declined almost 6%.
Flattening subscriber growth
Though Netflix has cemented its position in the entertainment business, its days of booming growth might be over, according to one Wall Street firm. Citing the plateauing subscriber count, William Power and Steven Beckert at Baird downgraded Netflix from Buy to Neutral in a research note released on Monday. Referring to a fourth quarter survey, Power and Beckert stated that 46% of respondents confirmed they were Netflix subscribers, compared to 47% in the third quarter and 35% a year ago.