😍 2022-08-17 06:10:00 – Paris/France.
The reality is that Netflix is losing a hefty 58% so far in 2022 and it's one of the worst performances of the year that we've seen on the Nasdaq. But his situation has ostensibly improved since the presentation of his results the day before. Up to 30% no less.
In addition to its expectations of increased subscribers, the big headache for the company, but also for analysts and investors, turned around, first with the stoppage of losses, below expectations, then below the hand of the guides who visualize the addition of 2 million additional subscribers for the current quarter of Netflix.
At the moment, the great bottom and recovery that the company is showing in the last quarter, we will now see, clearly with very significant advances, largely focuses on the expectations of the introduction of advertising in its broadcasts. A transcendental and necessary change in their business model that they hope to implement in early 2023a little slower than originally expected.
For a model that will also experience all kinds of changes, until it finds the definitive adjustment to Netflix's needs, although initially it should be a model similar to that of Roku. The multitude of possibilities that this modality offers is what will mark whether or not Netflix will be in the future.: whether it will endorse it as market leader or fade into the background with Disney+ creeping closer and closer on its heels.
In its price chart we see that the value gains 8,3% in the last 5 trading sessions, while already in the month its revaluation reaches 23,5%. Over the quarter, it climbed even more, 30,7%. However, their losses are still significant on Wall Street: 58,6%.
Among its strengths are definitive models that go through the reduction of their expenditure on content, but, above all, rationalize it in a complicated position in which it must be weighed with maintaining the interest of users continuously with many contents but at the same timereducing the high cost of production, among the highest on the market, if not the highest currently, compared to platforms with their own studios with which, at this level, at least for now, they cannot compete.
It is the entry into a new era in which, in addition, the suggestions are multiple, among them the one that has been put on the table, as TipRanks tells us, Peter Csathy, the founder and president of Creative Media, which indicates that Netflix overlooked much of the potential of franchised horror movies, case of "Scream" or "Insidious".
And it is that, compared to other genres, it is one of the most followed by adolescentsand although it produces scary films, such as "Wounds" or "Gerald's game" or series such as "Midnight Mass", "Ratched" or "The haunting of Hill House" it's not as neat or successful in this area as other platforms.
Regarding Tipranks recommendations Of the 32 analysts who follow Netflix, 7 opt to buy the stock, 19 to keep and 6 others to sell their shares on the market. Its average target price reaches $229,30, below its market price, so its downside potential is 8% according to the opinion of market experts.
From JPMorgan, they just revised their target price to $240, with a neutral recommendation on its actions, understanding that a narrative change is happening in the company. Its analyst Douglas Anmuth points out that "we expect Netflix to continue to benefit from the global proliferation of Internet-connected devices and the growing consumer preference for consuming video on demand via the Internet, approach 250 million paying subscribers worldwide by 2026.
But he specifies that “Netflix faces slowing subscriber growth after the more than strong gains fueled by the pandemic, increased competition, slowing adoption of connected TVs and macro/geopolitical factors.
If you want to know the most bullish values in the stock market, register for free on Investment Strategies
SOURCE: Reviews News
Do not hesitate to share our article on social networks to give us a solid boost. 🤟