![]() ![]() Through our numerous prompts, we've seen what LLMs are truly capable of, even with sometimes restrictive guardrails in place. Indeed, many of us have now had time to get comfortable with generative AI. OpenAI's impressive large language model (LLM) ChatGPT opened the floodgates of enthusiasm. The recent rally in AI stocks has been the talk of the town these days. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines. On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. ![]() Still, on average, the experts’ price target lands at $380.68, which now implies almost 10% downside risk. Below Wlodarczak’s price target sits Wells Fargo’s Steven Cahall, who forecasts a $500 call. Overall, data from TipRanks reveals that NFLX stock carries a moderate buy consensus view among covering analysts over the past three months. He pointed to Microsoft (NASDAQ: MSFT) as “the most logical acquirer in our view.” Why It Matters Raising eyebrows, should Netflix prove successful this year and the next, Wlodarczak believes management may sell the business. As evidence, the analyst pointed to a surge in FCF over 20, expecting more of the same in 2024. Notably, Wlodarczak also believes that Netflix distinguished itself from the competition thanks to enormous economies of scale. In November, Netflix incorporated an advertisement-supported subscription tier. “This should be enhanced by the subscriber and subscriber monetization benefits from their ad-supported tier,” Wlodarczak said. This way, the company is ideally positioned for subscriber, revenue and free cash flow ( FCF) growth despite broader economic challenges. Unsurprisingly, Wlodarczak applauded management’s decision to crack down on its prior password-sharing-friendly policy. However, he raised his price target to $535 from $425, representing the highest call among analysts surveyed by FactSet. Pivotal Research Group analyst Jeffrey Wlodarczak maintained a “buy” rating on Netflix shares. COVID-19 lockdowns in March and April 2020.”Īlthough NFLX stock enjoys broad support among Wall Street analysts, one voice stood out among the rest. user acquisition after the new policy went into effect in the four-and-a-half years that Antenna covered the streaming giant.įurther, Reuters reports that “he recent spike also exceeded levels seen during the initial U.S. Notably, Netflix enjoyed its four largest days of U.S. Per data from research firm Antenna, Netflix recorded nearly 100,000 daily sign-ups on both May 26 and May 27. While the abrupt pivot from a consumer-friendly stance aroused controversy, days after the May 23 password crackdown policy went into effect, new user signups accelerated. At one point, Netflix tweeted that “Love is sharing a password.” To be sure, U.S.-based users can still add outside-household members to their accounts for an additional $8 per month. Though this stat may seem staggering, the streaming company fueled the practice. As a result, one analyst broadcasted an aggressively bullish price target of $535 for NFLX stock.Īccording to Reuters, Netflix estimated that more than 100 million households offered their log-in credentials to people outside their homes. However, the password crackdown has so far proven successful, leading to increased daily U.S. Among its high-profile decisions, management decided to perform an about-face on its shared access policy. Once the people’s streaming service for encouraging password sharing, Netflix (NASDAQ: NFLX) eventually succumbed to business realities. ![]()
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