Traders Not Buying Netflix Shares That Wall Street’s Selling

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Netflix has been initiated as overweight by Morgan Stanley’s analyst Benjamin Swinburne. Swinburne has put a $500 price target on the company and expects total market increasing to 280 million subscribers by 2020, driven by Canada, the United Kingdom and the Nordic regions.

Pacific Crest Securities’ analyst Andy Hargreaves also raised his rating on the stock to $500, while the stock is currently trading around $448.

Despite Morgan Stanley and Pacific Crest’s recommendations to buy, traders on Stocktwits.com are skeptical on the the timing of the move.

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Shares of the internet television provider have skyrocketed over the last month, adding roughly $100 per share since the beginning of May, a 28 percent jump in price. Much of the price speculation has been baked into the stock thanks to recent reports around international expansion, but none of these plans have yet materialized into bottom line profits.

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Shares are up about 4 percent Tuesday morning, significantly lower than an average technology company move when initiated by Morgan Stanley. Lack of activity in early trading suggests there’s a lot more to the story than meets the eye.

That said, Netflix’s full year earnings forecast is expected to double  by year end according to analysts who have active ratings on the stock.

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