Netflix downgraded to Hold from Buy at Pivotal Research

Pivotal Research downgraded Netflix (NFLX) to Hold from Buy with a price target of $105, down from $160. The acquisition of Warner Bros. Discovery (WBD) is expensive, the analyst tells investors in a research note. The firm believes the deal comes with approval risk and a likely 18-24 month time frame to close along with the possibility of a bidding war. The “very expensive” acquisition highlights Netflix’s concern that short-form entertainment is doing to streaming what streaming has done to traditional TV, contends Pivotal.