Rally is over for Nasdaq stocks like Netflix

It may be downhill from here for some high-flying stocks in the Nasdaq. The Nasdaq Composite finally soared to a record high last Friday, making it the last of the three major stock indexes to hit the milestone in 2024. Now, traders have diverted their attention to the Federal Reserve as they await signs that the market has the momentum to continue its rally. But for some stocks in the Nasdaq, their ascent may soon come to an end. We used the CNBC Pro Stock Screener to search for names in the Nasdaq 100 , made up of the 100 largest non-financial stocks in the Nasdaq Composite, that could be due for a sell-off soon. To do this, we selected stocks that are up at least 40% in the last 12 months but have an analyst consensus price target that calls for at least a 1% pullback in the next year. One name on the list was streaming platform service Netflix , which is up 96% in the past year. However, analysts covering the stock see it falling nearly 7% in the near future. In January, Seaport Research Partners downgraded the name to a neutral rating from buy. While the company has good fundamentals, the firm thinks shares are now trading near their fair value. “We are downgrading our recommendation on NFLX shares to Neutral from Buy, having rapidly achieved our recently-increased $576 PT,” wrote analyst David Joyce. “Various valuation metrics relative to growth expectations through 2027 appear to be rather full.” Another name that could sell off soon is semiconductor manufacturer Advanced Micro Devices . The stock has rallied roughly 150% this past year, but could potentially fall 7%, according to average analyst estimates. Raymond James downgraded the name to outperform from a strong buy rating in January, citing elevated artificial intelligence revenue expectations. Analyst Srini Pajjuri’s price target of $195, up from $190, suggests nearly 4% downside from Friday’s close. Northland Capital Markets underscored the same reasons when it downgraded the stock in January to a market perform rating from outperform. “Expectations for AI growth are irrational exuberance in our view,” wrote analyst Gus Richard. “AI is big, its really big, just not as big as investors are thinking.” Other names on the list include food delivery service DoorDash , which has gained more than 35% in 2024, but could decline 3%, according to analyst consensus price targets. Big-box retailer Costco also made the list, with analysts’ price targets suggesting shares could slide 5%. — CNBC’s John Melloy contributed to this report.