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:GDRX) to Neutral from Buy, as well as Netflix (NASDAQ:NFLX), Roblox (NYSE:RBLX), Frontdoor (NASDAQ:FTDR), and eBay (NASDAQ:EBAY) 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:ABNB) and UbiSoft (OTC:UBSFY).
On the other hand, Sheridan and his colleagues are more positive about Amazon (NASDAQ:AMZN), Uber (NYSE:UBER), Meta Platforms (NASDAQ:FB), and Alphabet (NASDAQ:GOOGL). The analyst also reiterated Buy ratings on IAC/InterActiveCorp (NASDAQ:IAC), ANGI (NASDAQ:ANGI), Match Group (NASDAQ:MTCH), and Bumble (NASDAQ:BMBL).
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.