After the company missed its subscriber addition projections for the first time in five quarters, Deutsche Bank analyst Bryan Kraft downgraded Netflix (NFLX) to Hold as he believes that the "slowdown in growth" requires a "reevaluation of value".

Meanwhile, both BMO Capital and Stifel upgraded the stock to Buy-equivalent ratings as they see the post-earnings weakness in the shares as a buying opportunity. RESULTS: Last night, Netflix reported second-quarter earnings per share of 85c and revenue of $3.91B, with consensus at 79c and $3.94B, respectively. The company also announced second quarter streaming net additions of 5.15M and reported that first quarter U.S. memberships rose by 670,000 and international added 4.47M memberships. For the third quarter, Netflix expects streaming net additions of 5M members. The streaming company also said it sees third quarter earnings per share of 68c and revenue of $3.99B.

MOVING TO THE SIDELINES: Despite continuing to like Netflix's story, Deutsche Bank's Kraft downgraded Netflix to Hold from Buy and lowered his price target on the shares to $350 from $360. The analyst argued that the "slowdown in growth" is not thesis changing, but does require a "reevaluation" and consideration of the stock's year to date appreciation from $200 per share. Furthermore, Kraft added that he just does not see much upside over the next 12 months at current valuation levels, but still thinks the stock can double by 2025 to $700. Meanwhile, his peer at Wedbush contended that Netflix's valuation remains "unwarranted", and reiterated an Underperform rating and $125 price target on the shares. Analyst Michael Pachter expects content acquisition spending to trigger substantial cash burn for many years. Notwithstanding three Netflix price increases in the last five years, cash burn continues to grow, he added. The analyst also told investors that he believes international profits may remain elusive due to competition for content and subscriptions, and last year's price increases could cause a deceleration in subscriber growth. Loop Capital, Barclays, UBS, Credit Suisse and KeyBanc also lowered their prices targets for Netflix stock.

BMO CAPITAL, STIFEL UPGRADE NETFLIX: Bullish on the streaming service, BMO Capital analyst Daniel Salmon upgraded Netflix to Outperform from Market Perform, with a $400 price target, saying the 14% decline in the stock price following quarterly results offers investors an attractive level to build positions. The analyst pointed out that he expects the India growth stories to build into 2019, Netflix to continue to transition to more originals from licensed studio content well, and he thinks its "small but steady" growth of consumer product licensing revenue can create a more dynamic company over time. His peer at Stifel also upgraded Netflix to Buy from Hold, with a $406 price target. Analyst Scott Devitt cited the potential for near-term subscription add expectations to reset, a strong second half of the year content slate, and a domestic and international runway, which supports a doubling of the company's subscriber base in the next five to ten years. Overall, Devitt views Netflix's long-term outlook positively, given the upside case he believes exists for the company's domestic and international opportunities, and thinks shares are again at an attractive entry point.

PRICE ACTION: In morning trading, shares of Netflix are down about 8% to $368, which is well off the stock's earlier low of $344.