The Morning Brief: Deutsche Bank Tells Clients to Dump Netflix

Shares of one-time hedge fund favorite Netflix fell 1.14 percent on Monday, to close at $93.47, on an otherwise strong day for stocks after Deutsche Bank issued a sell recommendation on the streaming video company’s stock. In a report to clients, the investment bank stresses it is “positive on the business, cautious on the stock.” Deutsche stresses that Netflix has “a long runway for growth due to its first mover advantage” and its increasing investment in content and user experience. But it suggests the stock price is discounting prosperity over a very long period of time. It also tells clients it is skeptical the company would be acquired, citing “a lack of a compelling strategic rationale and severe economic/earnings dilution.” Deutsche Bank also retained its $90 price target on the stock.


Shares of hedge fund favorite Apple continued their recent run-up, climbing another 1.7 percent, to close at $116.05. The stock has risen in five straight trading sessions and is up nearly 13 percent since September 9 alone. It is also up nearly 30 percent since May. The iPhone and iPad maker was the fourth-most popular hedge fund stock at the end of the second quarter, with at least 139 investors. They include Greenlight Capital, which counted Apple as its largest U.S. long position at the end of the second quarter.


Shares of Tesaro surged nearly 19 percent, to close at $117.90, after the biotech company reported strong results for a drug it is developing to fight ovarian cancer. We earlier reported the stock was the second largest publicly traded holding of New York-based Perceptive Advisors at the end of the second quarter. The stock has more than doubled this year and has nearly quadrupled since its early February low.



Former Moore Capital Management trader Christopher Pia has put his Manhattan townhouse up for sale, asking $17.95 million, according to a Wall Street Journal report. This is more than twice what he shelled out for the West Village home four years ago. Pia also spent about $5 million to renovate the roughly 4,500-square-foot home, according to the report. Pia left Moore in 2008 to launch his own firm, Pia Capital Management. It is currently a family office. In 2011 he paid $1 million to settle charges he tried to manipulate commodities prices, the Journal notes.