Netflix is set to report its fourth-quarter earnings after market close on Tuesday, with most analysts predicting a strong performance. A majority of the 19 brokerages tracking the company have given it a “buy” or equivalent rating, indicating a positive outlook for the stock.
The consensus price target for Netflix is around $905, representing about 4% upside from its intraday price on Tuesday. This optimistic sentiment is largely due to the success of Netflix’s ad-supported plan, which has reduced pressure on the company to add new subscribers.
Analysts at Wedbush and JPMorgan expect this trend to continue, with the latter lowering its price target to $1,000 and citing the potential for expanding the subscriber base while driving high-margin revenue. Oppenheimer also trimmed its bullish price target last week.
The streaming giant is expected to report revenue growth of 15% year-over-year to $10.13 billion, with earnings projected to increase to $1.84 billion or $4.23 per share. Netflix’s stock has gained around 80% over the past 12 months.
Note: Starting with this quarter, Netflix will no longer provide quarterly subscriber numbers.
Source: https://www.investopedia.com/what-analysts-think-of-netflix-stock-ahead-of-earnings-8776073