Netflix, Inc. Machine Is Showing No Signs of Slowing Down: Daniel Ives
Netflix jumps more than 9% after adding more subscribers than expected; GBH's Daniel Ives cheers.
Netflix, Inc. (NASDAQ:NFLX) crushed Wall Street forecasts again, adding 8.33 million subscribers in the fourth-quarter compared with expectations for 6.39 million, and, as usual, the gains were driven by international subscriber growth. In reaction, Netflix shares soared more than 9 percent to top record highs in after-hours trading Monday.
GBH analyst Daniel Ives was the first to comment: “Domestic streaming net adds […] were one of the biggest positive takeaways for the bulls, as in the same quarter the company raised consumer monthly prices an upside net sub add of this magnitude was off the charts in our opinion. International net sub adds […] were very impressive as we believe international subs marches down the path to hitting between 90 million and 100 million subs by 2020 and is key to our bull thesis.”
“As we head into 2018 we believe Netflix has a number of growth levers which should fuel the company’s next phase of strategic penetration among both US and especially international consumers and this quarter reiterated this message “loud and clear” […] Overall, this was a “home run quarter” for Netflix and should put any lingering worries to rest around sub growth, international ramp, and the “negative” possible effects from the price increase. While the Disney competition is on the horizon, Netflix showed with these results/guidance that the Netflix machine is showing no signs of slowing down.”
As such, Ives reiterates a Highly Attractive rating on Netflix shares, with a $255 price target, which implies a potential upside of 12% from today’s closing price. (To watch Ives’ track record, click here)
The initial word out on the Street echoes Ives’ bullish conviction on the streaming service giant, as TipRanks analytics showcase NFLX as a Buy. Based on 22 analysts polled in the last 3 months, 17 are bullish on Netflix stock, 4 are sidelined, and only one is bearish. However, the 12-month average price target stands at $232.23, marking only a slight upside from to