Netflix Downgraded (NFLX, AMZN)

Two UBS analysts have downgraded Netflix NFLX to Sell from Neutral and maintained their $90 target on the shares. The analysts, Brian Fitzgerald and Brian Pitz, said the recent speculation that the company may be acquired by Amazon AMZN is "unfounded". They believe "the current valuation reflects a premium for an acquistion that will not occur in the medium term." An Amazon and Netflix merger would require Amazon to charge sales tax to nearly all domestic consumers. The analysts note that, "In general, e-retailers are not required to charge sales taxes online because they do not have a physical point of presence in most states." Netflix spiked this morning over 10% to a fresh 52-week high of $119.50. It has since given back most of those gains and now trades up 66 cents, or 0.61%, to $108.49.