Wells Fargo downgrades Netflix: 'If content is king, then cash is queen'

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Wells Fargo downgrades Netflix: 'If content is king, then cash is queen'
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Wells Fargo lowered its rating on Netflix to underperform from market perform and said the company will need to spend more.

Netflix CEO Reed Hastings split the company in two in 2011, thinking that the growing ubiquity of high-speed Internet access would soon mean the end of their disruptive DVD mailing business. But neglecting the DVD business proved to be a mistake, and Netflix reversed course.on Monday and said the cost for the streaming service to acquire new subscribers will be "more expensive than investors realize.

The firm lowered its rating on the stock to underperform from market perform and moved its price target down to $265 from $308. Wells Fargo said it also expects spending levels to remain elevated due to increased streaming competition from other services such as

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