scorecard
  1. Home
  2. slideshows
  3. miscellaneous
  4. 'We feel worse about subscriber growth': Here's why Wall Street is striking a more cautious tone after Netflix's latest earnings

'We feel worse about subscriber growth': Here's why Wall Street is striking a more cautious tone after Netflix's latest earnings

RBC: "We come away less bullish on Global Subs Adds."

'We feel worse about subscriber growth': Here's why Wall Street is striking a more cautious tone after Netflix's latest earnings

Rosenblatt: "Coming out of the quarter we feel worse about subscriber growth."

Rosenblatt: "Coming out of the quarter we feel worse about subscriber growth."

Price target: $265

Rating: Neutral

"We believe this early positive reaction is inconsistent with the fundamentals reported and guided to in 3Q earnings," Rosenblatt analyst Bernie McTernan said in a note to clients on Thursday.

He continued: "Coming out of the quarter we feel worse about subscriber growth given the 4Q19 guide for global subscriber net adds was below our lower than consensus forecast (+7.6M guide vs +8.6M RBLT and +9.5M consensus)."

Wedbush: "The company faces a steep uphill climb to replace the content it is slated to lose over the next two years."

Wedbush: "The company faces a steep uphill climb to replace the content it is slated to lose over the next two years."

Price target: $188

Rating: Underperform

"The company faces a steep uphill climb to replace the content it is slated to lose over the next two years," Wedbush analyst Michael Pachter wrote in a note to clients on Friday.

Patcher added: "We estimate that by the end of 2021 Netflix will have virtually no content from Disney, Fox, Warner Bros. or NBCUniversal, and we think its efforts to replace that content with originals will only partially succeed."

Guggenheim: "We do expect investors to remain cautious due to the overhang from competition."

Guggenheim: "We do expect investors to remain cautious due to the overhang from competition."

Price target: Lowered to $400, from $420

Rating: Buy

"We are confident in the subscriber and economic growth potential of the business over the long term; however, we do expect investors to remain cautious due to the overhang from competition," Michael Morris, an analyst at Guggenheim, said in a note to clients on Thursday.

Morris continued: "We are lowering our 12-month price target to $400 from our prior $420 based on higher operating expenses and slightly lower subscriber additions."

Needham: "We retain our HOLD rating because there are three battles that NFLX cannot win."

Needham: "We retain our HOLD rating because there are three battles that NFLX cannot win."

Price target: N/A

Rating: Hold

"We retain our HOLD rating because there are three battles that NFLX cannot win (our view): a) Price Wars; b) falling LTV/CAC; and c) US Saturation." Needham analyst Laura Martin wrote in a note to clients on Thursday.

Martin added:"We believe NFLX will spend more on content and marketing after Disney+ and Apple+ enter the market. As NFLX's debt rises, its equity value must decline to maintain a specific valuation multiple."

Advertisement