Netflix earnings beat expectations. Here’s what analysts are saying
Analysts are getting even more bullish on Netflix following its earnings beat for the third quarter . Shares jumped more than 6% in premarket trading Friday on the heels of the streamer’s results. Earnings came in at $5.40 per share and revenue at $9.83 billion. That’s well above Wall Street’s estimates for the period, as analysts were expecting $5.12 per share on revenue of $9.77 billion, according to LSEG. Netflix’s subscriber count for the quarter also beat the Street’s expectations. The company added 5.1 million subscribers compared to the 4.5 million StreetAccount estimate. That brings its total subscriber count to 282.7 million. At JPMorgan, analyst Doug Anmuth said Netflix remains a top pick in his eyes. Forecasting “more balanced” growth next year as the company’s ad tier scales up, he reiterated his overweight rating on the stock and hiked his price target by $100 to $850 — which reflects more than 23% upside from Thursday’s close. “We believe NFLX’s global scale, strong engagement (~2 hours/day), & diversified content will push NFLX toward becoming the default choice for how users consume TV, film, & other long-form Content,” Anmuth wrote in a Friday note to clients. Morgan Stanley analyst Benjamin Swinburne also reiterated his overweight rating on the name and upped his target by $10 to $830, implying more than 20% upside ahead, as of Thursday’s close. He called the results a “success” and sees even more room for growth. “Netflix is poised to remain the largest and fastest growing streaming service in the world as it heads into 2025,” the analyst said in a note. “Its ability to grow earnings 20-30% annually over time stems from layering on additional growth levers – paid sharing, ads, live, games – while increasing its return on content spend.” Here is what other firms are saying: Pivotal Research keeps buy rating on stock The firm raised its price target to $925, a Street high. “It is abundantly clear that NFLX is demonstrating massive scale as it continues to produce strong subscriber results and free cash flow with the ability to invest to accelerate that growth (through deals such as the ’25 WWE agreement and the “24 Christmas NFL Games) while its streaming peers continue to generate substantial losses, are resorting to aggressive price hikes amidst generally mediocre subscriber results.” Bernstein reiterates its market perform rating The firm increased its price target to $780 from $625. “The user growth was indeed disappointing — mostly due to LATAM — yet the worst fears are now behind and the forward looking commentary was encouraging: a much stronger content slate for Q4 completed with NFL games and the much-anticipated Squid Games; 11-13% revenue growth guidance for ’25 led by sub growth; continued operating margin expansion to a conservative 28%; and continued AVOD adoption that should be ready for the big leagues in ’26. Smooth sailing ahead?” Bank of America reiterates its buy rating The bank increased its price target to $800 from $740. “In our view, Netflix remains one of the best positioned companies within media and has several growth drivers, including the accelerating ramp of its burgeoning ad business (leveraging new partners such as TTD), which is expected to double in ’25 (albeit off a small base) and become a multi-year growth driver in ’26 and beyond, along with Gaming, Live and Sports.” UBS reiterates its buy rating The bank increased its price target to $825 from $750. “We see Netflix as the main beneficiary of rationalizing DTC competition and raise our PT. 3Q results were generally ahead (OI 5% higher) while commentary pointed to sustained double-digit revenue growth and margin expansion in 2025.” Goldman Sachs maintains neutral rating on Netflix, with $750 price target “While investor debates remain around the timing/magnitude of price increases in key geographies and the level of conservatism around the company’s forward operating margin, NFLX continues to highlight operational tailwinds through quarterly forward estimate revisions.”
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