Goldman slashes rating on Netflix and eBay to sell on caution around U.S. consumer

In a note on the internet sector, Goldman Sachs downgraded several stocks, moving Netflix , eBay , Roblox and Frontdoor to sell from neutral and GoodRx Holdings to neutral from buy. Analysts led by Eric Sheridan say they have concerns around the impact of a consumer recession and heightened levels of competition on Netflix, say there are increasing concerns about the post-pandemic environment for Roblox, see eBay’s forward GMV and revenue growth at risk, and believe the investor debates around inflation in the home services space to remain a headwind for Frontdoor. More broadly, the analysts say there have been a number of data points that give it increased caution around the U.S. consumer and overall macroeconomic environment.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.