News

JP Morgan reiterates overweight rating for Netflix

1 Mins read

JP Morgan has reiterated its overweight rating on streaming giant Netflix Inc. and raised its stock price target to $495. Analysts at JP Morgan remain bullish heading into second-quarter earnings, which are due next week. The analysts noted that Netflix shares have significantly outperformed the market since the first-quarter earnings report, with a 33% increase compared to an 8% increase in the S&P 500.

Smooth rollout of paid sharing driving revenue and subscriptions

Netflix has smoothly rolled out paid sharing across over 100 markets since late May, which analysts believe will drive incremental revenue, subscriptions, and profit. Global data from Sprinklr, Google Trends, and other third-party sources suggests that there is less noise surrounding this recent rollout compared to the four markets launched in February.

Positive user trends in June

Data from Apptopia indicates that download and daily average user trends for Netflix accelerated in June. Based on this data, analysts predict around 2.4 million net additions for the second quarter. They have revised their previous forecast of 1.0 million net additions to match the company’s own guidance.

Strong growth anticipated for the remainder of the year

Looking ahead, JP Morgan’s analysts expect Netflix’s net additions to increase to 6.75 million in the third quarter and 10 million in the fourth quarter. This would bring the full-year total to 21 million net additions.

Impressive stock performance

Since the start of the year, Netflix’s stock has gained an impressive 51%, outperforming the S&P 500, which has gained 16%.

Related posts
News

Vice Media Layoffs and Changes

1 Mins read
NEW YORK — In a memo to staff on Thursday, Vice Media’s CEO revealed plans to lay off several hundred employees and…
News

Intuitive Machines' Moon Landing

2 Mins read
Historic Achievement by Intuitive Machines Inc. Intuitive Machines Inc. made history on Thursday as their Odysseus spacecraft became the first commercial lander…
News

Bouygues Telecom to Acquire La Poste Telecom

1 Mins read
By Andrea Figueras Bouygues Telecom, a part of the Bouygues group, has announced the signing of an exclusivity agreement with La Poste…

Leave a Reply

Your email address will not be published. Required fields are marked *

− 3 = 3