From Fortune:

Netflix, once considered the winner of the streaming wars, now faces the challenge of meeting Wall Street’s expectations. Analysts like BMO and Bank of America are praising the company, while Citi Research downgraded its stock, citing a possible overvaluation. The costs of winning the streaming wars may require Netflix to spend too much on content, according to some analysts. Netflix is also considering breaking into the video game industry, which could further complicate the company’s story for investors. Analysts caution that spending more on content doesn’t necessarily translate to more subscribers. While a big M&A deal could help the company, it may hurt its stock and free cash flow. With increasing content spending and possible acquisitions looming, Netflix’s stock faces uncertainty despite its past success.



Read more: Why did Citigroup downgrade Netflix despite saying it is the winner of the streaming wars?