Writer's Strike To Weigh On Netflix's Cash Spend But Analyst Says Investors Are Expecting Solid Q4
Portfolio Pulse from Nabaparna Bhattacharya
Piper Sandler analyst Matt Farrell reiterated a Neutral rating on Netflix (NASDAQ:NFLX), raising the price target to $475 from $400. Netflix is expected to post Q4 results on January 23, 2024. The stock has rallied nearly 40% in recent months, indicating investor expectations for a strong Q4 performance. Global paid net adds for Q4 are expected to be similar to Q3, with global ARM flat year-over-year. Netflix anticipates Q4 revenue of $8.7 billion, an 11% increase year-over-year, and a 2024 operating margin of 22-23%. The 2024 cash content spend is projected to be $17 billion, up from $13 billion in 2023, due to the impact of a writer's strike. NFLX shares were up 0.67% to $483.57 at last check.
January 18, 2024 | 7:01 pm
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Piper Sandler analyst Matt Farrell maintains a Neutral rating on Netflix but raises the price target to $475. The company is expected to report strong Q4 results, with a significant increase in content spend for 2024 due to a writer's strike. Shares are currently trading higher.
The increase in the price target by Piper Sandler and the anticipation of strong Q4 results are positive signals for Netflix's stock in the short term. The significant rise in content spend for 2024 reflects confidence in the company's growth strategy despite the recent writer's strike. The stock's recent rally further supports the positive outlook.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100