Roku (NASDAQ: ROKU) stock is trouncing the market so far in 2023, but that rally will soon be tested. The streaming video giant is slated to give investors its first-quarter earnings update in late April, likely sparking volatility for the stock price in the coming days.
2022 was not a fun year for FAANG investors. Every single one of the major technology giants saw their share prices fall by more than 25% last year, ending a decade-plus bull run that made these companies some of the most valuable in the world. Falling share prices for the techno
Netflix (NASDAQ: NFLX) recently announced its 2023 first-quarter financial figures, and the results were mixed. Revenue of just under $8.2 billion fell below Wall Street analyst estimates, but diluted earnings per share of $2.88 beat expectations by a tiny margin.
The companies that make up the FAANG acronym have undergone some name changes over the years, but their stocks led the market up until 2022. It's made up of the following:
Facebook, now known as Meta Platforms (NASDAQ: META)
Amazon (NASDAQ: AMZN)
Apple (NASDAQ: AAPL)
Netflix (NAS
For the quarter ended March 2023, Netflix (NFLX) reported revenue of $8.16 billion, up 3.7% over the same period last year. EPS came in at $2.88, compared to $3.53 in the year-ago quarter.
Regency-era London took over the British capital's Leicester Square on Friday as the "Queen Charlotte" cast premiered the first spin-off from hit Netflix period drama "Bridgerton" dedicated to the fan favourite character.
Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the ProShares UltraPro QQQ (Symbol: TQQQ) where we have detected an approximate $194.4 million dollar outflow -- that's a 1.5% decrease week over week (
Investors in Netflix, Inc. NFLX need to pay close attention to the stock based on moves in the options market lately. That is because the Jun 16, 2023 $5.00 Call had some of the highest implied volatility of all equity options today.
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
The streaming pioneer has the service with the most subscriptions. This video will review Netflix's (NASDAQ: NFLX) latest earnings results and let you know if the stock is a buy right now.
Shares of Netflix (NASDAQ: NFLX) are still down from their peak, but the odds of a full reversal are improving. The Q1 results were mixed, but factors within the report suggest business will accelerate through the end of the year. This has the analysts shifting their sentiment a
Is the glass half-full, or half-empty? The answer largely depends on what you prioritize as an investor. Streaming giant Netflix (NASDAQ: NFLX) fell short of last quarter's subscriber and revenue growth estimates when it recently reported results, but the company topped earnings
What a difference a year can make on Wall Street. In 2021, investors endured little pain, with the benchmark S&P 500 contending with no bigger than a 5% correction. In 2022, however, the S&P 500, along with the iconic Dow Jones Industrial Average and growth-focused Nasdaq
Netflix (
NASDAQ:NFLX
) stock wobbled after
earnings this week, plunging by around 10% in the after-hours session before recovering nearly all of the ground lost. Indeed, it took a while for investors to digest the news and calm their nerves. On the following day,
Netflix stock closed down more than 3%. The quarterly results were not too remarkable, with 232.5 million global paid subscribers in the books, up less than 1% quarter-over-quarter. With Netflix poised to complete the rollout of its paid sharing (or
password crackdown) across most markets in the next quarter, questions linger as to whether "freeloaders" will bite.
Despite the rough quarter and potentially over-extended rally, I'm staying neutral as Netflix still has the means to prove itself over the year ahead.
Password Crackdown Could Weigh on Short-Term Subscriber Growth
The environment ahead of the streamers is not a pretty one. With a recession likely in the cards, many consumers are bound to revisit their monthly subscription budgets. While Netflix has released a steady stream of intriguing content of late, including
Beef and the latest season of
Love is Blind, I'm not so sure that consumers are willing to keep paying up for such titles as the costs of living continue to surge. Add frustrations from the ongoing password crackdown into the equation, and Netflix may be at risk of hurting its reputation as a streaming top dog.
Indeed, Netflix's paid sharing rollout (a friendlier term for password-sharing crackdown) does not seem to be the magic solution to the firm's growth woes, especially as times get harder and a recession gets closer.
Personally, I believe Netflix would have found more freeloader-to-paying user conversions had it rolled out its paid sharing program back in 2021 when times were better.
These days, consumer wallets are under increasing pressure; lingering inflation and rate-induced macro headwinds are partially to blame. As such pressures mount, there's a chance that the paid-sharing program could go wrong if it hasn't already. In
prior pieces, I noted that such a program was unlikely to turn the tides back in Netflix's favor.
Indeed, it's not hard to imagine that many primary Netflix account holders justified the monthly expense because it entertained them and those they shared their passwords with.
Undoubtedly, Netflix provides good value if it can entertain one's friends or family outside the household. Entertain a crowd, and the price of admission is well worthwhile, especially if the so-called freeloaders were paying primary Netflix subscribers under the table.
Freeloader Shakedown Could Pay Off Down the Road
Now that Netflix is holding its hands out (or shaking down the freeloaders), I fear many paying Netflix subscribers have already taken great offense. Still, I believe the paid sharing program could help benefit the firm over the longer term.
Undoubtedly, many consumers are not happy about the recent sharing plan rollout. Some users have taken to Twitter to express their frustrations over location-based issues they experience on family plans. Though Netflix has cleared the air over the ability to stream while traveling, many consumers may have already protested against a seemingly "messy" password crackdown with their wallets.
For now, it seems like the password crackdown was a questionable move. Still, some think it'll help get Netflix's growth back on the right track.
Tim Nollen of Macquarie seems to think the sharing plan will help give its ad-based tier a jolt. As initial shock and distaste for the crackdown fade with time, I do think Nollen makes an excellent point. The paid sharing plan may have cleared the runway for its ad-based tier.
Is Netflix Stock a Buy, According to Analysts?
Turning to Wall Street, NFLX stock comes in as a Moderate Buy. Out of 32 analyst ratings, there are 17 Buys, 13 Holds, and two Sells.
The
average Netflix stock price target is $367.59, implying upside potential of 13%. Analyst price targets range from a low of $230.00 per share to a high of $440.00 per share.
The Bottom Line on NFLX Stock
As long as Netflix releases must-watch content, it will be harder to stay off the platform as people keep talking about the latest hit shows.
My guess is that recently-canceled subscribers will not be gone for long and that Netflix will be able to make it through what could be a wave of recession-induced subscription cancellations.
Disclosure
The speed with which Netflix (NASDAQ: NFLX) has brought advertising to the platform is impressive and could drive the next phase of the company's growth. In this video, Travis Hoium digs into the latest numbers and one shocking point revealed in Netflix's first-quarter earnings r
Once upon a time, an upstart company called Netflix (NASDAQ: NFLX) redefined how people consumed movies and TV shows. It all started with those iconic red envelopes, which brought DVDs right to people's doorsteps and opened up a whole new world of entertainment in their living ro
Netflix (NASDAQ: NFLX) reported first-quarter earnings this week, and the market didn't appear to love the results. Shares were down 3.2% the following day.