The day after reporting horrific subscriber losses, Netflix’s stock has again been punished, dropping 35% and being downgraded by several analysts. One went so far as to call the Netflix business model “unsustainable.”

James Montgomery Scott analyst Tony Wible was among those who downgraded Netflix’s stock, and he is not optimistic on the company right now:

“The new baseline of sub metrics is troubling, management credibility has crumbled, international adoption is weak (as we suspected), content costs are mounting and it is clearer that the DVD business accounts for the vast majority of profits,” he wrote. “Management has failed to rebuild faith in the stock, which is still expensive and mispriced by value standards . . . We believe the Netflix model is unsustainable, as the company faces rising costs that it hoped it could pass onto its subs, which appear unwilling to do so.”

“Looks like the nuclear winter scenario is playing out for Netflix,” he wrote. “Subscriber base expansion in the U.S. appears to be minimal and losses from international launches are weighing on profitability. We think third-quarter results combined with fourth-quarter guidance and comments on 2012 put to rest the bull case on Netflix as we know it.”

Susquehanna Financial analyst Vasily Karasyov also downgraded Netflix’s stock, and added some harsh word of his own:

“Looks like the nuclear winter scenario is playing out for Netflix . . . Subscriber base expansion in the U.S. appears to be minimal and losses from international launches are weighing on profitability. We think third-quarter results combined with fourth-quarter guidance and comments on 2012 put to rest the bull case on Netflix as we know it . . . Netflix stock may be transitioning from the momentum stock category into the broken story basket.”

Are analysts overreacting to Netflix’s rough times over the last few months, or has the sun permanently set on the former industry darling?

(via The Hollywood Reporter)