Netflix

+12.35% The following is a summary of the Netflix, Inc. (NFLX) Q4 2023 Earnings Call Transcript: Financial Performance: Netflix reported a 70% quarter-on-quarter growth in its ads business over the last three quarters, totaling 23 million MAUs, with plans for continued growth. Cash balance over $7 billion at the end of 2023 with a projected $6 billion build in cash flow for 2024. Plans to increase content spend to as much as $17 billion, maintaining healthy revenue growth and growing profit and profit margins. Netflix expects healthy double-digit FX-neutral revenue growth for 2024, powered by member growth and full-year impact of 2023 net adds. Achieved 13% FX-neutral revenue growth in Q4 in the EMEA region. The company plans to return excess cash to shareholders via buybacks. Business Progress: Integration of pay sharing product has been successful and is expected to drive growth going forward. It’s venturing into different segments with […]

Netflix, Inc. (NASDAQ: NFLX) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 01/24/2024 7.15% Keybanc $545 → $580 Maintains Overweight 01/19/2024 -21.48% Benchmark $350 → $425 Maintains Sell 01/18/2024 -0.05% Seaport Global $482 → $541 Maintains Buy 01/18/2024 -12.25% Piper Sandler $400 → $475 Maintains Neutral 01/18/2024 3.46% UBS $500 → $560 Maintains Buy 01/17/2024 8.08% B of A Securities $525 → $585 Maintains Buy 01/17/2024 0.69% Keybanc $525 → $545 Maintains Overweight 01/12/2024 10.85% Oppenheimer $475 → $600 Maintains Outperform 01/09/2024 -7.63% Goldman Sachs $400 → $500 Maintains Neutral 01/09/2024 4.57% BMO Capital → $566 Initiates Coverage On → Outperform 01/09/2024 -7.63% Citigroup → $500 Downgrades Buy → Neutral 12/28/2023 -3.01% Keybanc $510 → $525 Maintains Overweight 12/22/2023 -8.55% DZ Bank → $495 Downgrades Buy → Hold 12/21/2023 -3.01% Wedbush → $525 Reiterates Outperform → Outperform 12/18/2023 1.61% Morgan Stanley $475

Netflix (NFLX) reported Q4 earnings late Tuesday of $2.11 per diluted share, up from $0.12 a year earlier. Analysts polled by Capital IQ expected $2.22. Revenue in the quarter ended Dec. 31 was $8.83 billion, up from $7.85 billion a year earlier. Analysts surveyed by Capital IQ expected $8.71 billion. The company said it expects Q1 diluted EPS of $4.49 on revenue of $9.24 billion. Analysts polled by Capital IQ expect EPS of $4.10 on revenue of $9.26 billion.

Netflix’s deal to become the new home of hit wrestling show “WWE Raw” and other WWE shows in the US and abroad is a positive one, says Andrew Uerkwitz, analyst at Jefferies, in a research note. The streaming giant’s deal, a 10-year deal valued at more than $5 billion, expands the live content offerings on Netflix but doesn’t stray far from its scripted content roots, says the analyst. “A worthy experiment to determine if the WWE die-hards will convert to subs and show up for the live broadcast, but also with higher delayed watching or re-watch value than live sports given its scripted entertainment/story value as well,” says Uerkwitz. He adds that the additional optionality for behind the scenes spin-offs and expansions outside the US is interesting as well. Shares rise 9.8% to $540.40 in premarket trading.

By Brian Swint Netflix shares are surging after the company reported earnings on Tuesday after the bell. The stock gained 10% in premarket trading to $539.62 following strong subscriber growth and revenue gains. Coming into the session it was already up 34% over the past year and 20% in the last three months. However, Wall Street analysts were cautioning against euphoria. Deutsche Bank downgraded the shares to Hold from Buy, even though it also raised its price target to $525 from $460. Analyst Bryan Kraft said that Netflix’s leadership position is “fully priced into the stock at these levels.” Needham’s Laura Martin kept a Hold rating on the stock, without giving a price target. She recommends investors consider media stocks more focused on advertising revenue because spending on advertising will pick up this year in the absence of more Hollywood strikes and with elections coming up. Oppenheimer analysts led by

Netflix’s upcoming results will likely come with 1Q guidance that is expected to point to continued topline acceleration, UBS analysts say in a research note. The streaming giant is forecast to keep leaning in on pricing this year after focusing on paid sharing in 2023, and even if this will drive moderating subscriber growth, it will improve average revenue per member, analysts say. UBS raises its target price to $560 from $500 on the prospects of paid sharing and a return to price increases. Shares rise 0.7% to $483.49.

Netflix (NFLX) is set to see growth in Q4 and 2024 since it benefits the most as the industry raises prices, consolidates platforms, reduces spending, and focuses on licensing, UBS said in a note emailed Thursday. Netflix is set to report its Q4 results on Jan. 23. Analysts, including John Hodulik, expect Q4 subscription growth of 9 million subscribers, largely in line with the previous quarter’s 8.8 million users. Guidance for Q1 is set to indicate continued growth, although subscribers are expected to be seasonally softer, but better year over year. The analysts predict the Q4 average revenue per user, or ARPU, to stay the same due to limited price increases, but expect 2024 ARPU growth to speed up from likely new price increases and accumulated benefits from paid sharing. The investment firm said that their estimate assumes Netflix will prioritize pricing in 2024, after focusing on paid sharing in

Netflix, Inc. (NASDAQ: NFLX) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 01/19/2024 -11.1% Benchmark $350 → $425 Maintains Sell 01/18/2024 13.16% Seaport Global $482 → $541 Maintains Buy 01/18/2024 -0.64% Piper Sandler $400 → $475 Maintains Neutral 01/18/2024 17.14% UBS $500 → $560 Maintains Buy 01/17/2024 22.36% B of A Securities $525 → $585 Maintains Buy 01/17/2024 14% Keybanc $525 → $545 Maintains Overweight 01/12/2024 25.5% Oppenheimer $475 → $600 Maintains Outperform 01/09/2024 4.59% Goldman Sachs $400 → $500 Maintains Neutral 01/09/2024 18.39% BMO Capital → $566 Initiates Coverage On → Outperform 01/09/2024 4.59% Citigroup → $500 Downgrades Buy → Neutral 12/28/2023 9.81% Keybanc $510 → $525 Maintains Overweight 12/22/2023 3.54% DZ Bank → $495 Downgrades Buy → Hold 12/21/2023 9.81% Wedbush → $525 Reiterates Outperform → Outperform 12/18/2023 15.04% Morgan Stanley $475 → $550 Maintains Overweight 10/19/2023 -0.64% Morgan Stanley

Benchmark analyst Matthew Harrigan maintains Netflix (NASDAQ:NFLX) with a Sell and raises the price target from $350 to $425.

Netflix is poised to strengthen its position as the leading streaming service due to changes in the last 18 months that include evolving industry dynamics, talent strikes and an investor focus on profitability. “These changes (e.g., reducing content spend/output, increasing third-party licensing) have been a tacit acknowledgement that not all media companies will be able to achieve Netflix’s global reach and scale in streaming,” BofA Research Analyst Jessica Reif Ehrlich says in a note. “It is becoming increasingly clear that Netflix has won the ‘streaming wars.’” Since Netflix can now buy more from outside providers it won’t have to finance as much new production and can instead spend on established content, Reif Ehrlich says. BofA raises its price target to $585 from $525.

Netflix, Inc. (NASDAQ: NFLX) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 01/17/2024 13.13% Keybanc $525 → $545 Maintains Overweight 01/12/2024 24.55% Oppenheimer $475 → $600 Maintains Outperform 01/09/2024 3.79% Goldman Sachs $400 → $500 Maintains Neutral 01/09/2024 17.49% BMO Capital → $566 Initiates Coverage On → Outperform 01/09/2024 3.79% Citigroup → $500 Downgrades Buy → Neutral 12/28/2023 8.98% Keybanc $510 → $525 Maintains Overweight 12/22/2023 2.75% DZ Bank → $495 Downgrades Buy → Hold 12/21/2023 8.98% Wedbush → $525 Reiterates Outperform → Outperform 12/18/2023 14.17% Morgan Stanley $475 → $550 Maintains Overweight 10/19/2023 -1.4% Morgan Stanley $430 → $475 Upgrades Equal-Weight → Overweight 10/19/2023 -0.36% JP Morgan $455 → $480 Maintains Overweight 10/19/2023 -4.51% Guggenheim → $460 Reiterates Buy → Buy 10/19/2023 8.98% Wedbush → $525 Reiterates Outperform → Outperform 10/19/2023 -3.48% Truist Securities $430 → $465 Upgrades Hold → Buy

Keybanc analyst Justin Patterson maintains Netflix (NASDAQ:NFLX) with a Overweight and raises the price target from $525 to $545.