Netflix Stock: Analysts’ Forecast Before Earnings
Netflix will be sharing its first-quarter results after the market closes on Thursday, and analysts are optimistic about what they will reveal. The streaming giant is expected to show growth in revenue and profit, drawing praise from major financial institutions.
JPMorgan recently praised Netflix as the “most resilient” company they track, pointing to the strong subscriber base and members watching an average of two hours of content each day. With an “overweight” rating and a price target of $1,025, JPMorgan sees a bright future for Netflix.
Morgan Stanley also named Netflix a “top pick,” anticipating the company to demonstrate resilience in a challenging global economy. The pullback in Netflix shares following recent news was seen as a buying opportunity by analysts.
A majority of analysts covering Netflix agree that the stock is a solid “buy.” Out of 18 analysts tracked, 14 have given Netflix a “buy” or equivalent rating, with the rest issuing a “hold” rating. The consensus price target suggests almost 20% upside from the previous closing price.
For the first quarter, Netflix is predicted to report revenue of $10.5 billion, up 12% year-over-year, and net income of $2.48 billion, or $5.69 per share, an increase from the previous year. Netflix shares have seen significant growth over the past year, rising nearly 50%.
Analysts are bullish on Netflix’s prospects and see potential for further growth in the streaming industry. Stay tuned for Netflix’s earnings report to see how the company has fared in the first quarter.
