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Benzinga
Benzinga
Business
Anusuya Lahiri

Here's Why Analysts Expressed Caution Ahead Of Netflix's Q1

  • Analysts expressed caution ahead of Netflix Inc (NASDAQ:NFLX) Q1 earnings, highlighting EMEA's churn risk, the company's second-largest region, due to potential consumer spending pressure tied to higher energy costs and broader inflationary pressures and loss of subscribers in Russia.
  • Baird analyst William Power noted that each 10 bps increase in churn could negatively impact EMEA net additions by 200,000. 
  • Power maintained his Neutral rating and $420 price target (14% upside) on Netflix shares.
  • Stifel analyst Scott Devitt lowered the price target on Netflix to $460 from $500 (24.9% upside) and kept a Buy. 
  • Devitt left his Q1 revenue estimates "largely unchanged" given that engagement data is tracking in line with his estimates and guidance. 
  • Devitt hardened his 2022 estimates and beyond due to a more conservative approach to the subscriber and ARPPU growth on worsening macro conditions and continued uncertainty.
  • Price Action: NFLX shares traded lower by 3.17% at $356.66 on the last check Thursday.
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