12.6 C
New York
Monday, March 4, 2024

Netflix Earnings Expectations Prompt Bull To Revise Stock View: ‘Expect Growth To Accelerate Next Year…’ – Netflix (NASDAQ:NFLX)

Netflix Earnings Expectations Prompt Bull To Revise Stock View: ‘Expect Growth To Accelerate Next Year…’ – Netflix (NASDAQ:NFLX)



“The Best Report Benzinga Has Ever Produced”

Massive returns are possible within this market! For a limited time, get access to the Benzinga Insider Report, usually $47/month, for just $0.99! Discover extremely undervalued stock picks before they skyrocket! Time is running out! Act fast and secure your future wealth at this unbelievable discount! Claim Your $0.99 Offer NOW!

Advertorial


 

As the earnings season kicks off for tech stocks this week, Netflix Inc. (NASDAQ:NFLX) is feeling the pressure of balancing its growth aspirations and margin targets.

According to a report by Barron’s, UBS analyst John Hodulik suggests that benefits from Netflix’s clampdown on password sharing and the introduction of ad-supported streaming may not be immediate. Consequently, Hodulik lowered his target price on the stock from $525 to $500, while maintaining a Buy rating.

ENTER TO WIN $500 IN STOCK OR CRYPTO

Enter your email and you’ll also get Benzinga’s ultimate morning update AND a free $30 gift card and more!

“For 3Q [third quarter], we expect flat ARPU [average revenue per user]…given limited price increases but expect growth to accelerate next year as accretion from paid sharing builds & new price ups are likely implemented,” Hodulik wrote.

Despite a 21% increase in the stock’s value this year, it has seen a significant drop from over $450 in July. This decline has been primarily due to investors’ disappointment over cautious remarks on margins and subscriber growth last month.

See Also: No Legit Excuse For Positive THC Test, New Rules Double Weed License Fees & Latest Reg Updates

Hodulik anticipates that Netflix will report the addition of about six million subscribers in the third quarter on Wednesday, with a forecast of stronger growth in the fourth quarter. However, he also cautioned that margin expansion might be moderate.


Secure Your Financial Future

Hidden gems are waiting to be found in this market! Don’t miss the Benzinga Insider Report, typically $47/month, now ONLY $0.99! Uncover incredibly undervalued stocks before they soar! Limited time offer! Secure your financial success with this unbeatable discount! Grab your 0.99 offer TODAY!

Advertorial


 

The streaming giant is currently trying to strike a balance between enhancing its margins and not dissuading subscribers. The last increase in prices for its ad-free service was in January 2022, but Netflix plans to raise prices again following the end of the Hollywood actors’ strike, as reported by The Wall Street Journal.

However, some research indicates that consumers are growing weary of price hikes across various streaming platforms. A study by HundredX found that streaming prices have risen to the point where customers are considering returning to cable TV providers.

As of the market close on Monday, Netflix shares were trading at $361.23 as per Benzinga Pro.

Read Next: Cannabis Consumers Who Had COVID-19 Experienced Better Outcomes Than Nonusers, New Study Shows

Photo by rafastockbr on Shutterstock


Engineered by Benzinga Neuro, Edited by Pooja Rajkumari


The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. Learn more.



“The Best Report Benzinga Has Ever Produced”

Massive returns are possible within this market! For a limited time, get access to the Benzinga Insider Report, usually $47/month, for just $0.99! Discover extremely undervalued stock picks before they skyrocket! Time is running out! Act fast and secure your future wealth at this unbelievable discount! Claim Your $0.99 Offer NOW!

Advertorial


 

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.



Source link

Latest stories