Netflix is touting big viewership numbers for the new season of its hit show "Stranger Things." But the series return doesn't appear to be attracting many new subscribers, a Wall Street analyst says. Netflix stock fell on Wednesday.
"Despite record total viewing hours, early app rankings do not indicate significant upside to paid net adds," KeyBanc Capital Markets analyst Justin Patterson said in a note to clients. "While 'Stranger Things' could theoretically drive strength over the coming weeks, we believe this is a large task amid more time spent outdoors."
Netflix has forecast losing 2 million subscribers in the current quarter. But search queries and app downloads suggest an even weaker June quarter, Patterson said.
Patterson reiterated his sector weight, or neutral, rating on Netflix stock.
Netflix Stock Continues Slide
On the stock market today, Netflix stock dropped 2.3% to close at 192.91.
The fourth season of "Stranger Things" premiered on May 27. The show broke the company's record for biggest-ever premiere weekend of an English-language series.
Netflix stock has been in a steep slide since the company reported a surprise loss of subscribers in the first quarter on April 19.
The Los Gatos, Calif.-based company lost 200,000 subscribers in the March quarter. Analysts and the company's own outlook predicted 2.5 million new subscribers in the period. The streaming video leader ended the first quarter with 221.6 million subscribers worldwide.
Netflix blamed the subscriber decline on increased competition, negative macroeconomic trends, rampant account sharing and the suspension of service in Russia.
Netflix stock hit a record high of 700.99 on Nov. 17. It notched a four-year low of 162.71 on May 12.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
