Wall Street analysts remain bullish on Netflix, with many increasing their stock price targets and maintaining “outperform” ratings ahead of the company’s second-quarter results. The focus is shifting from subscriber growth to broader financial performance and strategic outlook, driven by recent price hikes and the expansion of its advertising tier.
Analysts point to several factors that could drive upside, including a significant sequential foreign-exchange tailwind, positive takeaways from the mid-May upfronts meeting with Netflix management, strong indications of content quality leadership, and an increasing trend in ad channel checks. The release of the Squid Game finale on Netflix also generated unprecedented views, further fueling optimism.
Many analysts expect price increases to drive revenue growth in 2025, with some projecting significant upside factors, including record-breaking Squid Game viewership data and a content bonanza in the second half of 2025. Strategically, the global scale of Netflix’s operations is seen as a key driver of its success, along with its ability to attract advertisers and generate strong free cash flow.
Despite concerns over inflation and economic uncertainty, many Wall Street observers remain confident that Netflix will continue to outperform, driven by its unmatched scale in streaming, significant opportunities in advertising, and continued earnings and free cash flow growth.
Source: https://www.hollywoodreporter.com/business/business-news/netflix-earnings-price-hikes-ai-1236316338