Netflix Inc. (NFLX)

[winston]

not vested

Netflix Inc - Stock Analyst Research
Target Price* 950
Recommendation NEUTRAL

Netflix Inc.- Ability to withstand recession

1Q25 revenue met our estimates while PATMI outperformed due to better monetization and favourable timing of expenses.

1Q25 revenue/PATMI was at 24%/26% of our FY25e forecasts.

Revenue growth of 13% YoY was driven by higher subscription and recent price adjustment (+16% for standard plans & +14% for ad plans).

This growth is partially attributed to NFLX’s continued focus on its ad-supported business. Management has projected strong growth for 2Q25, anticipating minimal impact from the broader economic slowdown.

We raise our FY25e revenue/PATMI by 1% each to account for gradual price increases, thriving ads business, and increasing operating leverage.

We raised terminal growth from 3.0% to 3.5% due to its long-term monetization potential through advertising. We raise our DCF target price to US$950 (prev. US$870), and upgrade from REDUCE to NEUTRAL.

Our WACC assumptions remain unchanged. A strong content pipeline and the expansion of its ad-supported tier position will enable NFLX to navigate potential economic slowdowns.

However, trading at 37x FY25e P/E—well above the industry average of 17x—NFLX’s current valuation suggests limited near-term upside.

Source: Phillips

https://www.poems.com.sg/stock-research/NFLX/

[winston]

not vested

Netflix said on Wednesday 94 million subscribers use its advertising-supported tier, up from 70 million in November, as the video-streaming giant’s lower-priced plan sees strong support amid global economic uncertainty.

With more than 300 million global customers, Netflix (NASDAQ:NFLX) is seeing robust spending across all streaming tiers and had said in April it is not seeing any significant shifts in consumer spending.

Source: Phillips

[winston]

not vested

Netflix posts earnings beat as revenue grows 16% in second quarter.

The company updated its full-year revenue forecast, noting that it expects revenue to be between $44.8 billion and $45.2 billion, up from a range of $43.5 billion to $44.5 billion.

Netflix’s higher forecast reflects the weakening of the U.S. dollar compared with other currencies as well as healthy member growth and ad sales.

Netflix reported revenue of $11.08 billion for the second quarter, higher than Wall Street’s estimates of $11.07 billion.

Source: Phillips