Netflix Сould Bounce Back in 2023, Wall Street Analysts Say

Dec 12, 2022

https://liquidity-provider.com/app/uploads/2022/12/dizajn-bez-nazvaniya-46.png

This year has been a difficult one for Netflix. There are, however, a number of Wall Street analysts who are confident that the stock will recover in 2023, rating the company as bullish.

Wells Fargo's Steven Cahall upgraded Netflix's stock to Overweight from Equal Weight on Friday. A few days earlier, JP Morgan updated its stock rating to Overweight. Also, in mid-November, Bank of America Securities analyst Jessica Reif Ehrlich updated her recommendation for Netflix with a Buy rating. A total of 21 analysts, compared to 15 roughly three months ago, have given Netflix positive ratings.

The analysts' call comes as Netflix stock has fallen 47% this year, compared to the S&P 500's 17% decline. In the first two quarters of 2022, the online streaming firm reported a decrease in subscribers. Also, the industry is becoming more competitive: Disney+ launched a $7.99-per-month ad-supported subscription plan on Thursday, directly challenging Netflix's $6.99 basic ad-supported plan.

The analysts often upgrade or reiterate a Buy recommendation if they believe the stock is undervalued or it has dropped in value significantly and there is a tailwind that investors are not taking into account. Regardless of whether the ad-based model proves successful in the coming years or if content improves, Bank of America, J.P. Morgan, and Wells Fargo are optimistic about Netflix's future. "The pieces were there for tougher Netflix performance in 2022," Cahall explained. The analyst expects the key performance indicators to surpass in 2023.

Data from Wells Fargo for November shows a 6% growth in monthly active users as year-end content arrives. Emily in Paris, a hit Netflix series, will premiere its third season on December 21. In addition to that, Roald Dahl's Matilda the Musical and Alice in Borderland are both set for Netflix release at the end of December.

Additionally, Cahall projects a 23 million increase to 279 million in global subscribers by 2025 for the ad-supported service, compared to the prior estimate of 256 million. "We don't see how an ad-supported model isn't anything other than incremental to subscribers," the analyst commented.

Bank of America's Ehrlich believes the new advertising package will appeal to the Gen-Z generation, which tends to be less wealthy and doesn't watch television. A report from JP Morgan's Doug Anmuth pointed to an increase in Netflix's global app downloads after the launch of its ad service; November saw Netflix's 16% year-over-year decline compared to October's 30%.

Even so, there are some reasons to be skeptical. A rising cost of living is putting pressure on consumers' wallets, and while the ad-based model is cheaper, we can't predict whether it will result in significant revenue growth. Some observers fear US subscribers with higher subscription tiers, such as those paying $16 or $20 a month, will switch to the cheaper ad-supported service. This could have an adverse effect on revenue, one that ad revenue and new subscribers might not be able to offset. Globally, the average monthly revenue per paying membership was $11.85 in the three months that ended September 30.

Netflix didn't reply to a comment request immediately; however, on October's earnings call, it said that most people don't switch from their existing plans.

"When you factor in those extra members we expect, this leads to a significant and incremental revenue and profit stream," Netflix's CPO said back then.

Subscribe Our Newsletter

No Worries, You Won't See Any Ads on WhatsApp Anytime Soon!

Milena

No Worries, You Won’t See Any Ads on WhatsApp Anytime Soon!

According to reports, current plans to monetize WhatsApp do not entail inserting advertisements directly on the mainstream platform.

Companies
Story of Big Tech Giant Apple Will Not Be About Growth This Time.

Milena

Story of Big Tech Giant Apple Will Not Be About Growth This Time. However, Bulls Believe in The Opposite.

Big tech giant Apple's sales are expected to be somewhat lower than a year ago, according to consensus projections. However, a slew of bullish analysts predict brighter times ahead.

Companies
Tamta

What Is Return On Investment (ROI), And How Can You Calculate It?
Whether you're investing in equities, futures, cryptocurrencies, or other forms of investments, the first question that often comes to mind is, "How much profit can I potentially make from this venture?"

discover
Top 10 Crypto Payment Processors in 2023.

Top 10 Crypto Payment Processors in 2023

Despite their current hurdles, the growing acceptance of crypto payment processors indicates a blossoming future for the crypto space.

Crypto Payments

Contact Us

Contact the Liquidity Provider
for any questions and advertising inquiries b2broker

    Please fill out this contact form to get in touch with us

    / 3000

    By clicking “Get in touch” button, you agree to the privacy policy

    Successful!
    Thank you for your request.
    We will contact you shortly.
    Close

    Alexander

    Is IUL a Good Investment Strategy? — A Guide for Beginner Investors

    Is IUL a Good Investment Strategy?

    Alexander

    Are Crypto Wallets Safe? — Tips to Ensure Maximum Protection of Your Digital Assets.

    Tips to Ensure Maximum Protection of Your Digital Assets

    Alexander

    Roth IRA Guide: What It Is and What You Need to Know.

    Roth IRA Guide: What It Is and What You Need to Know

    Alexander

    From Gold to Index Funds and Crypto: Where to Invest in 2023 for Long Term?

    From Gold to Index Funds and Crypto: Where to Invest in 2023

    Alexander

    Understanding Algorithmic Trading: A Guide for Beginners

    Understanding Algorithmic Trading: A Guide

    Alexander

    Stop Vs. Stop-Limit Order: How Do They Differ?

    Stop Vs. Stop-Limit Order: How Do They Differ

    Alexander

    Invest in the Intelligent Future: The Best AI Stock Market Leaders of 2023

    Invest in the Intelligent Future: The Best AI Stock Market Leaders of 2023

    Deborah Middleton

    How MEC Rules Can Impact Your Life Insurance Policy

    How MEC Rules Can Impact Your Life Insurance Policy.

    Deborah Middleton

    Navigating the Ethical Landscape of AI: Challenges and Solutions

    Navigating the Ethical Landscape of AI: Challenges and Solutions

    Deborah Middleton

    Managing Your Financials The Right Way – A Startup Guide 

    Managing Your Financials The Right Way - A Startup Guide

    Anna

    A Beginner Guide To The Crypto Analysis Tools.

    A Beginner Guide To The Crypto Analysis Tools.

    Anna

    A Brief Introduction to Scalping

    A Brief Introduction to Scalping.

    Anna

    How to Invest in Stocks: A Beginner’s Guide

    How to Invest in Stocks: A Beginner’s Guide

    Anna

    Tips On Finding Crypto Liquidity Providers In 2023

    Tips On Finding Crypto Liquidity Providers In 2023.

    Anna

    Forex Liquidity in 6 Questions and Tips on How to Become Successful in Trading

    Forex Liquidity in 6 Questions and Tips on How to Become Successful in Trading

    Anna

    A Brief and Comprehensive Guide to Spot Trading.

    A Brief and Comprehensive Guide to Spot Trading.

    Anna

    What is The Difference Between Liquidity Provider and Liquidity Aggregator?

    What is The Difference Between Liquidity Provider and Liquidity Aggregator?

    Tamta

    What Is SWIFT Banking System?

    What Is SWIFT Banking System?

    Tamta

    How Liquidity Providers Drive The Foreign Exchange Market

    How Liquidity Providers Drive The Foreign Exchange Market

    Tamta

    How to Start Investing In Crypto

    How to Start Investing In Crypto

    Tamta

    5 Best Crypto CFD Liquidity Providers 2023

    5 Best Crypto CFD Liquidity Providers 2023.

    Tamta

    The Power Of Liquidity For Crypto Exchanges

    The Power Of Liquidity For Crypto Exchanges

    Tamta

    Institutional Forex Liquidity Explained: Why Do We Need It?

    Institutional Forex Liquidity Explained: Why Do We Need It?

    Tamta

    What Is Return On Investment (ROI), And How Can You Calculate It?

    What Is Return On Investment (ROI), And How Can You Calculate It?
    Latest News - Liquidity Provider: Business & FinTech Media
    • News
      • Stocks
      • Banks and Finance
      • Companies
      • Crypto
      • Forex
      • AI
      • Technology
      • DeFi
      • NFT
    • Articles
      • Crypto Payments
      • Trading
      • Crypto Exchange Business
      • Forex Business
      • Fintech
      • Liquidity
      • FinTech Awards
      • Blockchain
      • Investing
      • NFT
      • DeFi
    • More
      • Videos
      • Liquidity Providers List
      • Crypto Payment Providers
    [email protected]

    © 2023 Liquidity Provider. All Rights Reserved

    Privacy Policy Cookie Policy
    This site is registered on wpml.org as a development site.