Netflix has its Q3 earnings due 17-October, and is attracting attention from the traders and investors. Several
analysts are at contrary view on the stock ahead of the announcement. Morgan Stanley also upped Netflix from
“Equal Weight”, with analysts saying that it is the “clear winner in streaming”. The firm increased its price estimate
by $200 to $800 supported by Netflix’s current and potential further growth in both the premium subscription and
the cheaper ad version. Piper also think Netflix’s margins may beat expectations in 2025 and 2026.
Meanwhile, Barclays downgraded Netflix to “Underweight” and set its price target to $550. Netflix’s issues were
under attack by Barclays, which questioned its premium valuation saying that the current stock price assumes
Netflix doubles its subscribers. They pointed out that Netflix has been depending on new methods including paid
sharing in an attempt to record double digits of continuous revenue growth which are elusive in the long run.
Despite the mixed reviews from analysts, TD Cowen remains bullish, lifting the price target to $820 and predicting
that Netflix will beat analyst’s consensus for Q3, adding 4.88 million new subscribers.
Netflix shares were down almost 3% on Monday, to stand at $700.33 per share. As for the details, investors are able
to wait till the next earning call of the company for more prophecy.