Netflix Faces Margin and Growth Equilibrium Challenges: Analyst
Portfolio Pulse from Anusuya Lahiri
Benchmark analyst Matthew Harrigan reiterated a Sell rating for Netflix Inc (NASDAQ:NFLX) with a $293 price target. The streaming giant's CFO, Spencer Neumann, noted the company's need to maintain a balance between revenue growth and margin improvement. The analyst sees operating margin improving by 2.0% this year, 2.1% in 2024, and 1.8% in 2025. Neumann also suggested only muted 3Q23 and 4Q23 ARM improvements. Netflix is making progress in advertising and remains favorably positioned for scripted programming delivery.
September 14, 2023 | 5:38 pm
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NEGATIVE IMPACT
Netflix's Sell rating is reiterated by Benchmark analyst, with a price target of $293. The company's CFO emphasized the need for balance between revenue growth and margin improvement, which could impact the stock's performance.
The reiterated Sell rating and the CFO's comments about the need for balance between revenue growth and margin improvement could negatively impact investor sentiment and the stock's performance. The company's progress in advertising and its position for scripted programming delivery could provide some positive outlook, but the overall tone of the news is negative.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100