NetflixShares fell 20% Friday morning in premarket trading after the company’s announcement quietly admittedIn its fourth-quarter earningsThe streaming competition is limiting Netflix’s growth. It will mark Netflix’s worst day in 2014 since October 16, 2014. Shares fell 19.3% on Oct. 16.

The quarter beat analysts’ expectations, both in terms of user numbers and top line. Investors seemed stunned by the admission. Netflix executives are known for pointing out things such as sleep and claiming that any other activity users might be engaging in is competition. However, even though the streaming wars were heating up with DisneyNetflix’s leaders were generally resolute regarding the arrival of new competitors, including CNBC-owner NBCUniversal.

The company stated in a shareholder letter that it had received on Thursday, “While the added competition might be affecting some of our marginal growth,”.

Even more important is the question of competition, as Netflix just raised its standard plans in Canada and U.S. from $13.99 a $15.49. Higher prices can be a risky gamble if there are other options.

After Thursday’s earnings announcement, KeyBanc Capital Markets analysts decreased their rating of the stock to Sector Weight from overweight. The analysts noted that they were less positive about the outlook because, despite a more robust content platform, there are still challenges for the company’s gross adds.

Piper Sandler analyst maintained an overweight rating for the stock, while reducing its target price to $705 from $562. However, a Friday note by Piper Sandler stated that subscriber growth opportunities are still very much in their early stages.

The other areas we consider promising are likely to see a return to 20MM+ annually growth. Piper Sandler said that the transition to linear TV is not complete and there are still opportunities for merchandising and gaming.

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