This Bearish Analyst Forecasts Huge Downside For Netflix, Cites Member Growth Risks and Ad Monetization Concerns
Portfolio Pulse from Anusuya Lahiri
Benchmark analyst Matthew Harrigan reiterated a Sell rating for Netflix, citing risks in member growth and ad monetization. He set a price target of $545, significantly below the current price of $715. Harrigan forecasts 431 million global members by 2033 with a 35%+ operating margin, but notes potential downside risks in member growth. The analyst highlights Netflix's reliance on pricing and new initiatives like AVOD and gaming for growth, and the market's focus on potential price hikes in the upcoming earnings report.
October 15, 2024 | 5:46 pm
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Benchmark analyst Matthew Harrigan reiterated a Sell rating for Netflix, citing risks in member growth and ad monetization. He set a price target of $545, significantly below the current price of $715. Harrigan forecasts 431 million global members by 2033 with a 35%+ operating margin, but notes potential downside risks in member growth.
The analyst's Sell rating and lower price target suggest a bearish outlook for Netflix, primarily due to concerns over member growth and ad monetization. The current stock price is significantly higher than the target, indicating potential downside. The market's focus on potential price hikes adds to the uncertainty.
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