Netflix's Ad Tier Accretion Despite Subscriber Deceleration Add To Stock Upside, Analyst Projects
Portfolio Pulse from Anusuya Lahiri
Wedbush analyst Michael Pachter maintained Netflix Inc (NASDAQ:NFLX) with an Outperform rating and raised the price target from $615 to $725, citing accretion from the ad tier and subscriber growth. Despite removing Netflix from Wedbush's Best Ideas List due to significant catalysts being priced in, Pachter sees continued profitability and free cash flow expansion. He projects Q1 revenue and EPS of $9.25 billion and $4.55, respectively. Netflix's stock gained 89% in the last 12 months, and exposure can also be gained through Invesco Next Gen Media And Gaming ETF (NYSE:GGME) and REX FANG & Innovation Equity Premium Income ETF (NASDAQ:FEPI).

March 27, 2024 | 6:07 pm
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REX FANG & Innovation Equity Premium Income ETF (NASDAQ:FEPI) is another way for investors to gain exposure to Netflix, as highlighted in the article.
FEPI, being mentioned alongside GGME as a means to gain exposure to Netflix, could benefit from Netflix's positive performance, though the impact is indirect.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Investors can gain exposure to Netflix's stock performance through the Invesco Next Gen Media And Gaming ETF (NYSE:GGME), as mentioned by the analyst.
Given that GGME is mentioned as a way to gain exposure to Netflix, the ETF could see a positive impact from Netflix's positive outlook, albeit indirectly.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Netflix's price target was raised from $615 to $725 by Wedbush analyst Michael Pachter, who maintained an Outperform rating. The analyst highlighted the ad tier's accretion and subscriber growth as key drivers.
The increase in Netflix's price target by a reputable analyst based on positive growth indicators such as ad tier accretion and subscriber growth suggests a bullish outlook, likely leading to a positive short-term impact on the stock.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100