Netflix

BofA Securities raised the price target on Netflix (NFLX) to $700 from $650 while maintaining its buy rating after the company reported “strong” Q1 results “including net adds” of 9.3 million. By comparison, the brokerage expected a 5.1 million estimate. analyst Jessica Reif Ehrlich wrote. Netflix will no longer disclose paid members , starting Q1 next year, Ehrlich said, citing the entertainment media giant. The brokerage sees the change as “a contributor to the negative after-market stock reaction.” Netflix has an average outperform rating and a price target range of $440 to $765, according to analysts polled by Capital IQ.

Netflix (NFLX) posted strong first-quarter results and has “several” growth drivers ahead, but its decision to stop disclosing two key performance metrics starting next year likely contributed to a share-price selloff, BofA Securities said in a note e-mailed Friday. Late Thursday, the streaming giant reported that its first-quarter revenue rose 15% year-over-year to $9.37 billion, while earnings jumped to $5.28 a share from $2.88, both topping market projections amid stronger-than-expected membership growth. The company projected second-quarter revenue at $9.49 billion, trailing Wall Street’s $9.53 billion views at the time. It expects net subscriber additions to be down sequentially due to seasonality. Netflix said in a letter to shareholders that it will stop reporting quarterly membership numbers and average revenue per membership, or ARM, starting with its 2025 first-quarter results. A lack of visibility into the two indicators likely dragged the stock lower in after-hours trade on Thursday, BofA analyst Jessica

Netflix Guides For Full Year 2024 Revenue Growth of 13%-15%; Operating Margin Seen at 25%.

Netflix (NFLX) reported Q1 earnings Thursday of $5.28 per diluted share, up from $2.88 a year earlier. Analysts polled by Capital IQ expected $4.53. Revenue in the quarter ended March 31 was $9.37 billion, up from $8.16 billion a year earlier. Analysts surveyed by Capital IQ expected $9.28 billion. The company said it expects Q2 diluted EPS of $4.68 on revenue of $9.49 billion. Analysts polled by Capital IQ expect EPS of $4.55 on revenue of $9.53 billion. The company shares were down nearly 3% in recent after-hours activity.

Netflix is hoping customers see its advertising-supported subscription tier as still better than cable. Co-CEO Greg Peters says in a video with 1Q earnings that greater awareness of the quality of the company’s ad experience should help boost subscriptions. He says that the linear TV ad experience is still “quite poor” in many places around the world. He also mentions low price and tools like integrated payments as drivers of growth for the ad tier. Ads membership grew 65% sequentially in 1Q, keeping pace with the quarter-on-quarter changes in the previous two reporting periods. Netflix shares are down 3.9% to $587.22 after-hours.

Netflix showed that its password-sharing crackdown continues to bear fruit, delivering its strongest first-quarter customer additions since the pandemic and further strengthening its position as the dominant global streamer. The company added 9.33 million subscribers in the first quarter, more than five times the number of customers it added during the same period a year earlier, with its efforts to limit password sharing continuing to bear fruit. Netflix began limiting password sharing in earnest about a year ago. Netflix has spent the last year rolling out that initiative, working to expand its ad business and changing its line-up of prices and plans to better position itself for the future. The company plans to stop providing investors quarterly membership numbers and the average revenue generated per member early next year because it now has multiple pricing tiers in a variety of markets. Netflix said it would add annual revenue guidance. Netflix

The following is a summary of the Netflix, Inc. (NFLX) Q1 2024 Earnings Call Transcript: Financial Performance: Netflix expects healthy double-digit revenue growth for the full year, with Q1 indicating a 15% increase. It forecasts its operating profit margin to increase to 25% in 2024, up from 21% last year. The company projects Q2 paid net additions to be lower than Q1. The expansion of its paid sharing and advertising businesses is facilitating multiple revenue streams. Its ad offering has grown by about 65%, quarter-to-quarter, in the last three consecutive quarters. Business Progress: Netflix is diversifying its revenue model, focusing on advertising and additional member features. The operationalization of pay sharing work has contributed to revenue conversion. Netflix plans to further expand into advertising, aiming to increase its base of paid members and audience for advertisers. The company aims to boost engagement by continuously improving its services and concentrating on

Netflix (NFLX) is expected to post “strong” Q1 results amid benefits from paid sharing tailwinds and industry rationalization, UBS Securities said Monday in a report. Paid sharing helps the company increase revenue growth despite weaker foreign exchange, the report said. UBS expects accelerating average revenue per member growth in H2 on the back of strong revenue growth, increased market share and favorable pricing dynamics. Netflix’s engagement trends remain consistent across tracked markets with an average 11% decline from a year earlier, UBS said. The firm said Netflix will benefit from rising pay TV competition as programmers intensify efforts to make streaming profitable by employing strategies such as price hikes, platform consolidation, library curation, content spending cuts and higher licensing fees. UBS reiterated its buy rating for Netflix stock and kept the price target at $685. Results from Q1 are scheduled for April 18. Netflix shares fell 0.1% in recent after-hours

Netflix (NFLX) is likely to report higher Q1 revenue April 18 as long-tail benefits of paid sharing become increasingly evident, Oppenheimer said in a note Thursday. Analysts, including Jason Helfstein, said that Netflix has captured about 20% of the 100 million disclosed opportunity for paid sharing, and could have a 60% capture rate by 2026, mainly due to “increasing content advantage and content/advertising spend pull-back by competitor streaming platforms.” They expect Netflix’s 2024 ad revenue to be $5.1 billion. The average revenue per member for 2024 is expected to rise 4% year-over-year, reflecting the recent basic and premium price increases in the US, the UK, and France, with potential upside from subscribers paying for extra members or other geographic price increases. “We believe Netflix’s dominance will continue, given its clear advantage in producing high-engagement content and monetizing that content more effectively than peers,” the analysts said. Oppenheimer kept its outperform

Piper Sandler analyst Thomas Champion maintains Netflix (NASDAQ:NFLX) with a Neutral and raises the price target from $550 to $600.

Barclays analyst Kannan Venkateshwar maintains Netflix (NASDAQ:NFLX) with a Equal-Weight and raises the price target from $475 to $550.

JP Morgan analyst Doug Anmuth maintains Netflix with a Overweight and raises the price target from $610 to $650.