Non-face-to-face stocks, which raised their ransom during the COVID-19 pandemic, are being shunned as the endemic period. Stock selling recommendations have been made for OTT Netflix and metaverse game platform Roblox.
Goldman Sachs, an investment bank on Wall Street, downgraded its investment opinions on Netflix and Roblox from “neutral” to “sell” on the 10th (local time). E-commerce company eBay’s investment opinions have also been lowered to selling.
Goldman Sachs cited the macroeconomic environment and slowing sales as reasons for the downgrade of investment opinions.
CNN said, “The increase in interest rates, the expansion of competition between companies, and the end of the beneficial effects of non-face-to-face industries due to the new coronavirus infection (COVID-19) were reflected in the adjustment of investment opinions.”
Goldman Sachs drastically lowered its Netflix target price from $265 to $186. Goldman Sachs said, “Considering inflation, slowing consumption, and concerns over intensifying competition in the streaming industry, we recommend selling Netflix,” adding, “The myth of Netflix’s growth has now become a questionable story.”
Reuters predicted that consumers whose wallets have become thinner due to inflation will begin to cancel their subscription to streaming services.
Goldman Sachs pointed out that Roblox is “the best position in the game and interactive entertainment industries, but the growth rate is expected to slow down due to the changed business environment after the COVID-19 pandemic.”
eBay also pointed out that it has been exposed to risks of sales growth due to the disappearance of the beneficiary effect of non-face-to-face industries and the high proportion of global sales.
In addition, Goldman Sachs has significantly lowered its target stock price from $150 to $95, while maintaining its selling opinion on lodging-sharing company Airbnb.
However, Goldman Sachs said it will maintain buying ratings for other technology stocks such as Amazon, Facebook parent company Meta Platform, Uber, and Google parent company Alphabet.