Nasdaq NFLX NetFlix

Paramount Global PARA shares have declined 28.6% year to date (YTD), underperforming the broader Zacks Consumer Discretionary sector’s appreciation of 3.5%. PARA shares have also lagged the Zacks Media Conglomerate industry a

Below is Validea's guru fundamental report for NETFLIX INC (NFLX). Of the 22 guru strategies we follow, NFLX rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. This momentum model looks for a combination of fundamental momentum

Walt Disney’s (DIS) streaming division, Disney+, has finally disclosed the details of its long-awaited plan to curb password sharing. The company has officially introduced a new “paid sharing” feature in the United States, Europe, Asia-Pacific, and other regions. With this move, DIS aims to boost streaming revenue by encouraging users to subscribe to individual plans. It’s important to note that users may find it challenging to avoid Disney’s crackdown. This is because the company will consider various factors, such as subscription activity, linked devices, and internet connection, to identify a user’s household. If the platform detects that a user is watching from outside their household, it may ask the user to confirm their location. Importantly, Disney+ is the latest streaming platform to join Netflix (NFLX) in cracking down on password-sharing. Netflix’s efforts last year led to a boost in subscriber numbers, reflecting the potential financial benefits of such restrictions. Meanwhile, Warner Bros. Discovery’s (WBD) Max also plans to limit account sharing later this year, aiming to boost revenue and curb unauthorized access. Disney Reveals Paid Sharing Options With this background on restrictions regarding password sharing, let’s take a look at the two options Disney has outlined for users who want to continue sharing their accounts: Add an Extra Member: For users on the Basic tier, adding an extra member outside their household will incur an additional monthly fee of $6.99. For Premium-tier subscribers, the fee increases to $9.99. Interestingly, each account can only accommodate one extra member. Transfer Profile: Those who have been using someone else’s account can transfer their profile and watch history to a new account by signing up for their own subscription. DIS Makes Efforts to Improve Profitability Beyond password sharing, Disney is taking several other strategic measures to enhance its financial performance. This includes increasing prices for its two subscription plans starting in October. The cost of the ad-supported Basic tier will increase from $7.99 to $9.99, while the ad-free tier will go from $13.99 to $15.99. Additionally, the company is cutting approximately 300 jobs across its legal, human resources, finance, and communications departments as part of its cost-reduction strategy. Is Disney a Good Stock to Buy? Turning to Wall Street, DIS has a Strong Buy consensus rating based on 18 Buys and four Holds assigned in the last three months. At $117.65, the  average Walt Disney price target implies 25.27% upside potential. Shares of the company have  gained about 4.5% year-to-date. See more DIS analyst ratings Disclosure

With the entertainment industry in upheaval these days, it is little surprise that Netflix (NFLX) is revamping some of its operations as well. In fact, it plans to pitch a series of industry figures on “transparency” at an event this Tuesday, noted a Deadline report. Investors were not exactly pleased, as shares were down fractionally in the closing minutes of Wednesday’s trading session. With streaming on the rise, and physical media and linear broadcast seemingly on the way out, the issue of how streamers get paid has become increasingly important. With that in mind, Netflix is hosting an event, which includes representatives from several major talent agencies, including Gersh, Paradigm and Verve, among others. The event is likely to focus on how Netflix plans to build deals going forward. Since the event is titled Netflix Explained, that makes such coverage all the more likely. The topic of streamer pay is not specifically on the agenda, but reports note it will be brought up. It sort of has to be; without clarity on this front, Netflix runs the risk of losing access to content, and without content, its viability as a platform is immediately questioned. European Television Gold Mine However, there seems to be one source of content for Netflix that has proven a real winner over the years: European television. For instance, Scandinavian television is proving a real hit on the platform. Titles like Lilyhammer and Billionaire Island are attracting viewers. Netflix piled in on investments in a time when many were pulling back, and the result has been several surprising hits. Meanwhile, in the United Kingdom, Netflix seems to be picking winners and losers, with a Financial Times report noting that “…smaller producers could be left behind.” Baby Reindeer proved a winner for Netflix, as did The Gentlemen and Fool Me Once, titles all produced in England that were each in the top five global shows. Is NFLX Stock a Good Buy Right Now? Turning to Wall Street, analysts have a Moderate Buy consensus rating on NFLX stock based on 25 Buy, 12 Hold and one Sell recommendations made in the past three months, as indicated by the graphic below. After a 89.8% rally in its share price over the past year, the average NFLX price target of $25.47 per share implies 7.97% upside potential. See more NFLX analyst ratings Disclosure

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings oft

Below is Validea's guru fundamental report for NETFLIX INC (NFLX). Of the 22 guru strategies we follow, NFLX rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. This momentum model looks for a combination of fundamental momentum

Roku stock (NASDAQ: ROKU), a company that sells streaming media players, digital content, and advertising, has seen its stock decline by close to 17% this year, trading at levels of about $76 per share. This compares to Netflix stock, (NASDAQ: NFLX), which has gained about 44% ov

There was great skepticism on Wall Street about Netflix's password crackdown - but the company has added 45 million paying subscribers, more than doubled its share price, and set new all-time highs since rolling out the change domestically in the spring of 2023. Imagine what NFLX will do for its next act.

Investors in Netflix Inc (Symbol: NFLX) saw new options begin trading today, for the September 2025 expiration. One of the key data points that goes into the price an option buyer is willing to pay, is the time value, so with 360 days until expiration the newly trading contract

Below is Validea's guru fundamental report for NETFLIX INC (NFLX). Of the 22 guru strategies we follow, NFLX rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. This momentum model looks for a combination of fundamental momentum

Twilio Inc. (NYSE: TWLO) provides developers and businesses tools and products to enhance their communications with customers. Its cloud communication-as-a-service (CPaaS) platform offers basic services like voice, email, and SMS messaging to more advanced interactive services

Chernobyl Disaster Ruins Nuclear ReputationThe Chernobyl nuclear disaster occurred in Northern Ukraine in the late 1980s. While conducting tests and simulations, a design flaw led to a substantial power surge. As engineers tried t

In the latest market close, Netflix (NFLX) reached $705.37, with a +0.62% movement compared to the previous day. The stock exceeded the S&P 500, which registered a gain of 0.28% for the day. Meanwhile, the Dow experienced a ri

The article examines whether the recent recovery in two underperforming dividend stocks on the Dow signals a potential turnaround.

Warner Bros. Discovery WBD shares have dipped 27.6% year to date, underperforming the broader Zacks Consumer Discretionary sector’s return of 1.8%. WBD shares have also lagged the Zacks Broadcast Radio and Television industry

For Immediate ReleaseChicago, IL – September 23, 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the

Below is Validea's guru fundamental report for NETFLIX INC (NFLX). Of the 22 guru strategies we follow, NFLX rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. This momentum model looks for a combination of fundamental momentum

Exercise equipment specialist Peloton Interactive (NASDAQ: PTON) has been a volatile investment in recent years.

Over the past few years, major players in the streaming wars such as Netflix (NFLX), Walt Disney Co. (DIS), and Warner Bros. Discovery (WBD) have achieved strong user growth and increased their earnings. In this article, I use the TipRanks Stock Comparison Tool to explain why I’m bullish on NFLX stock and neutral on both DIS and WBD. As a pure streaming play, I believe Netflix is the best choice among these three securities. Netflix (NFLX) As the undisputed leader in streaming, I have a bullish outlook on Netflix. The company has over 275 million global subscribers and remains well-positioned to execute its growth strategy. Netflix is projected to post an average revenue growth rate of around 13% over the next two years, though this might be conservative considering its expanding monetization channels. A key driver of growth is Netflix’s ad-supported tier. The company recently announced a 150% increase in upfront advertising sales from 2023 levels. In terms of valuation, Netflix is trading at 36 times its forward P/E ratio and 30 times its 2025 forecast. While this isn’t a bargain, it’s justifiable given the company’s operational and financial momentum. If net paid additions remain robust, there’s a strong likelihood that earnings per share (EPS) growth will surpass current baseline estimates. Netflix’s Recent Performance Despite NFLX stock’s 82% gain over the past year, I remain bullish. The stock’s rise is driven by its consistent ability to beat earnings estimates and demonstrate sustained growth. Netflix leads the streaming industry in profitability too, reporting a 27% operating margin in Q2, slightly down from Q1 but still above guidance. These margins are far superior to competitors such as Disney, whose Entertainment and Sports segment posted an 11.3% margin in Q2. Is NFLX Stock a Buy? Thirty-eight Wall Street analysts rate NFLX stock a Moderate Buy. This is based on 24 Buy, 12 Hold and one Sell recommendation made in the past three months. The average price target on Netflix stock of $713 suggests 1.57% upside from current levels. Read more analyst ratings on NFLX stock Walt Disney (DIS) I hold a neutral stance on Disney. This is mostly because the company has faced significant challenges in recent years. Intense competition, squeezed margins, and high debt levels have led to a steep decline in the share price. Unlike Netflix, Disney boasts a vast ecosystem, from theme parks to merchandise. In fact, the Parks & Experiences segment accounted for 70% of the company’s profits last year. Disney’s recent third-quarter results highlighted many of the challenges. Operating income for U.S. parks declined 6%, while international parks experienced a modest 2% increase. Both results were impacted by inflation-driven costs, rising technology expenses, and new guest offerings. On the bright side, Disney’s Streaming unit (comprised of Disney+, Hulu, and ESPN+) reported its first-ever profit. Although management had forecast profitability for by year’s end, the streaming business turned an unexpected profit of $47 million in Q3. That compares to a loss of $512 million a year earlier. The key question remains whether streaming growth can offset the ongoing decline in Disney’s traditional businesses, particularly its amusement parks. DIS Stock’s Recent Performance My neutral position on Disney mirrors the market’s cautious outlook, as the stock has significantly underperformed the S&P 500 index. Despite trading at a forward P/E of 18.9 times—55% below its historic average—it doesn’t appear to be undervalued. While Disney’s streaming segment has shown strong earnings growth, management’s modest Disney+ forecast likely won’t offset the slowdown in the Parks and Experiences division, which faces challenges both domestically and internationally. Is Disney Stock a Buy or Sell? Wall Street remains optimistic about Disney’s turnaround and future. A total of 22 Wall Street analysts rate the stock a Strong Buy. This rating is based on 18 Buy and four Hold recommendations made in the last three months. There are currently no Sell ratings on the stock. The average price target of $117.88 suggests potential upside of 26.47%. Read more analyst ratings on DIS stock Warner Bros. Discovery (WBD) Like Disney, I also hold a neutral opinion of Warner Bros. Discovery. Within the streaming space, WBD has positioned itself as a competitor through HBO Max and Discovery+, offering a mix of premium and reality TV content. However, the company is burdened by significant debt from its merger with Discovery and continues to face challenges in reducing it. Currently, WBD has $41.4 billion in gross debt, translating to a net debt-to-earnings leverage ratio of four times. Despite generating a solid $7.47 billion in cash flow last year, there is skepticism about the company’s ability to meet its leverage target of 2.5 to three times by the end of 2024. The major concern is that Warner Bros. Discovery is not yet profitable, with analysts forecasting profitability sometime in 2025. The path to profitability largely depends on the company’s direct-to-consumer (DTC) business strategy, which includes Max. So far this year, the segment is still operating at a small loss, but is experiencing global growth with 103.3 million subscribers. While U.S. HBO cable subscribers are declining, U.S. price hikes have offset lower average revenue per user, which is about $8—half of Netflix’s level. Profitability may take time, but Warner Bros. Discovery’s valuation remains attractive, trading at nearly 25% below the industry average. WBD’s Performance My neutral stance on WBD stock is mostly due to its nearly 30% decline this year resulting from weak earnings. In Q2, total revenue fell 6%, earnings dropped 16%, and free cash flow plunged 43% year over year, impacted by declining linear TV viewership and substantial debt. Is Warner Bros. Discovery Stock a Buy? Despite these concerns, Wall Street remains fairly bullish on WBD stock. Seventeen professional analysts give the shares a consensus Moderate Buy rating. This is based on 10 Buy, six Hold and one Sell recommendation made in the last three months. The average price target of $12.50 suggests 49.97% upside potential from current levels. Read more analyst ratings on WBD stock Conclusion I am bullish on Netflix and consider the stock to be the best investment of this group. Netflix has strong margins and growth potential, which justify its premium valuation. On the other had, I view Disney as a Hold. While it has promising revenue streams and restructuring potential, challenges in its parks segment persist. Warner Bros. Discovery also gets a Hold rating. While it might be a high-risk, high-reward opportunity, its current debt load is a significant issue and the company remains unprofitable. Disclosure Disclaimer

Friday, September 20, 2024The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including NVIDIA Corp. (NVDA), Netflix, Inc. (NFLX)