Tech wreck: Goldman Sachs cuts Netflix, Roblox and eBay to ‘sell’

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Goldman Sachs analysts downgraded shares of Netflix (NFLX), eBay (EBAY) and gaming/metaverse giant Roblox to rare “sell” ratings on Thursday. The Goldman Sachs analysts had previously rated these stocks with a lukewarm “neutral.”

The analysts said the downgrades were done after they decided “to incorporate a greater probability of a weaker macro environment and solidly lower revenue growth…to reflect broader industry maturation.”

In other words, rate hikes, increased competition and the fact that consumers are less worried about Covid and leaving their homes more often instead of sheltering in place are catching up to Netflix, Roblox and eBay.

Shares of Netflix and eBay both tumbled 5% Friday while Roblox fell 9%.

The Goldman Sachs analysts said they downgraded Netflix due to “concerns around the impact of a consumer recession as well as heightened levels of competition.” They said Netflix is now a “show-me story.”

There are growing worries that…

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