Shares of Netflix Inc. NFLX, -6.55% were off more than 2% in premarket trading Monday after CFRA analyst Kenneth Leon downgraded the stock to sell from hold. He wrote that Netflix’s stock is up 40% from its July low, but he thinks it could lag the S&P 500 SPX, -2.27% for the balance of the year. “In Q2 2022, NFLX realized only $103m in operating cash flow and $13m in free-cash flow,” Leon wrote. “These metrics should improve, but we are confident EBITDA [earnings before interest, taxes, depreciation, and amortization) and EPS (earnings per share) will be lower in 2022 2H compared to 1H results.” Leon added that an upcoming advertising tier of the service could help revive subscriber growth, though this catalyst is unlikely to play out until next year. The stock is up about 30% over the past three months as the S&P 500 SPX, -2.27% has risen 8%.
