{"id":3199,"date":"2023-10-19T12:55:49","date_gmt":"2023-10-19T12:55:49","guid":{"rendered":"https:\/\/infundpros.com\/markets\/netflix-stock-soars-how-its-latest-earnings-won-over-wall-street\/"},"modified":"2023-10-19T12:55:50","modified_gmt":"2023-10-19T12:55:50","slug":"netflix-stock-soars-how-its-latest-earnings-won-over-wall-street","status":"publish","type":"post","link":"https:\/\/infundpros.com\/?p=3199","title":{"rendered":"Netflix Stock Soars. How Its Latest Earnings Won Over Wall Street."},"content":{"rendered":"
\n
<\/p>\n

<\/p>\n

<\/p>\n<\/figure><\/div>\n

Netflix\u2019s latest earnings are convincing analysts that the streaming company can make more money from its members. A crackdown on password sharing is paying off already but the advertising business could offer additional opportunities.\u00a0<\/p>\n

\n Netflix
\n (ticker: NFLX) took the chance with its third-quarter earnings to announce more price increases and it was music to Wall Street\u2019s ears.\u00a0\u00a0<\/p>\n

\n

While third quarter earnings season is still in the early innings, KeyBanc analyst Justin Patterson wrote in a note, he believes Netflix is a rare asset that can offer investors growth across a range of economic environments. <\/p>\n

Netflix\u2019s quarterly addition of 8.8 million subscribers shows its efforts to make users pay for sharing their accounts are working, while its operating profit is rising and share buybacks should support earnings growth, according to Patterson.\u00a0\u00a0\u00a0\u00a0\u00a0<\/p>\n

Patterson raised his rating on Netflix to Overweight from Standard Weight. He introduced a target price of $510, based on a price-to-earnings multiple of 25 times Netflix\u2019s forecast 2024 earnings.\u00a0<\/p>\n

Netflix shares were up 15% at $398.70 in premarket trading on Thursday.\u00a0
\n Walt Disney
\n (DIS) stock rose 0.6% and
\n Paramount Global
\n (PARA) gained 1.1%. <\/p>\n

While \u2018paid sharing\u2019 looks to be paying off, Netflix\u2019s other profit-boosting initiative is the introduction of advertising for its cheaper subscription plans, which has been followed by its rivals. The growth of the ad-supported tier could help drive the stock higher, analysts think. <\/p>\n

Seaport Research analyst David Joyce estimated there could be around 6.5 million subscribers to the ad-supported tier, meaning advertising could be generating as much as $70 million-$90 million a quarter in revenue for Netflix. <\/p>\n

Joyce kept a Buy rating and $482 target price on Netflix. <\/p>\n

Netflix froze the price of its U.S. ad-supported tier, where it looks to be prioritizing building its user base.<\/p>\n

\u201cWe continue to believe price increases combined with scaling ad rev will drive average revenue per member growth in \u201924,\u201d UBS analyst John Hodulik wrote.\u00a0He kept a Buy rating and $500 target price on the stock, saying it will be the \u201cprime beneficiary\u201d of more rational competition in streaming.\u00a0<\/p>\n

Even bears on the stock looked to be impressed. Macquarie analyst Tim Nollen kept a Neutral rating on Netflix but said the company had delivered a solid quarter and was showing gradual improvement.\u00a0<\/p>\n

\u201cWe are optimistic on the upside potential to subs, revenue and earnings from paid sharing efforts and its ad tier, but are conscious of the time it will take for these to contribute,\u201d Nollen wrote. He kept a $410 target price on the stock.\u00a0<\/p>\n

Write to Adam Clark at adam.clark@barrons.com<\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Netflix\u2019s latest earnings are convincing analysts that the streaming company can make more money from its members. A crackdown on password sharing…<\/p>\n","protected":false},"author":1,"featured_media":3200,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[25],"tags":[],"class_list":{"0":"post-3199","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets"},"yoast_head":"\nNetflix Stock Soars. How Its Latest Earnings Won Over Wall Street. | inFundPros<\/title>\n<meta name=\"description\" content=\"Netflix\u2019s latest earnings are convincing analysts that the streaming company can make more money from its members. A crackdown on password sharing is\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/infundpros.com\/?p=3199\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Netflix Stock Soars. How Its Latest Earnings Won Over Wall Street. | inFundPros\" \/>\n<meta property=\"og:description\" content=\"Netflix\u2019s latest earnings are convincing analysts that the streaming company can make more money from its members. A crackdown on password sharing is\" \/>\n<meta property=\"og:url\" content=\"https:\/\/infundpros.com\/?p=3199\" \/>\n<meta property=\"og:site_name\" content=\"inFundPros\" \/>\n<meta property=\"article:published_time\" content=\"2023-10-19T12:55:49+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-10-19T12:55:50+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/1697720150_social.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"640\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Press Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Press Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/infundpros.com\/?p=3199#article\",\"isPartOf\":{\"@id\":\"https:\/\/infundpros.com\/?p=3199\"},\"author\":{\"name\":\"Press Room\",\"@id\":\"https:\/\/infundpros.com\/#\/schema\/person\/87f7e632b195ea95c91503d9281f5eff\"},\"headline\":\"Netflix Stock Soars. How Its Latest Earnings Won Over Wall Street.\",\"datePublished\":\"2023-10-19T12:55:49+00:00\",\"dateModified\":\"2023-10-19T12:55:50+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/infundpros.com\/?p=3199\"},\"wordCount\":435,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/infundpros.com\/#organization\"},\"articleSection\":[\"Markets\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/infundpros.com\/?p=3199#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/infundpros.com\/?p=3199\",\"url\":\"https:\/\/infundpros.com\/?p=3199\",\"name\":\"Netflix Stock Soars. How Its Latest Earnings Won Over Wall Street. | inFundPros\",\"isPartOf\":{\"@id\":\"https:\/\/infundpros.com\/#website\"},\"datePublished\":\"2023-10-19T12:55:49+00:00\",\"dateModified\":\"2023-10-19T12:55:50+00:00\",\"description\":\"Netflix\u2019s latest earnings are convincing analysts that the streaming company can make more money from its members. A crackdown on password sharing is\",\"breadcrumb\":{\"@id\":\"https:\/\/infundpros.com\/?p=3199#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/infundpros.com\/?p=3199\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/infundpros.com\/?p=3199#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/infundpros.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Netflix Stock Soars. How Its Latest Earnings Won Over Wall Street.\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/infundpros.com\/#website\",\"url\":\"https:\/\/infundpros.com\/\",\"name\":\"Fintech Advance\",\"description\":\"Latest Finance and Tech News and Updates\",\"publisher\":{\"@id\":\"https:\/\/infundpros.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/infundpros.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/infundpros.com\/#organization\",\"name\":\"Fintech Advance\",\"url\":\"https:\/\/infundpros.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/infundpros.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/tech-logo.png\",\"contentUrl\":\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/tech-logo.png\",\"width\":409,\"height\":70,\"caption\":\"Fintech Advance\"},\"image\":{\"@id\":\"https:\/\/infundpros.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/infundpros.com\/#\/schema\/person\/87f7e632b195ea95c91503d9281f5eff\",\"name\":\"Press Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/infundpros.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png\",\"contentUrl\":\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png\",\"caption\":\"Press Room\"},\"sameAs\":[\"https:\/\/infundpros.com\"],\"url\":\"https:\/\/infundpros.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Netflix Stock Soars. How Its Latest Earnings Won Over Wall Street. | inFundPros","description":"Netflix\u2019s latest earnings are convincing analysts that the streaming company can make more money from its members. A crackdown on password sharing is","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/infundpros.com\/?p=3199","og_locale":"en_US","og_type":"article","og_title":"Netflix Stock Soars. How Its Latest Earnings Won Over Wall Street. | inFundPros","og_description":"Netflix\u2019s latest earnings are convincing analysts that the streaming company can make more money from its members. A crackdown on password sharing is","og_url":"https:\/\/infundpros.com\/?p=3199","og_site_name":"inFundPros","article_published_time":"2023-10-19T12:55:49+00:00","article_modified_time":"2023-10-19T12:55:50+00:00","og_image":[{"width":1280,"height":640,"url":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/1697720150_social.jpeg","type":"image\/jpeg"}],"author":"Press Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Press Room","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/infundpros.com\/?p=3199#article","isPartOf":{"@id":"https:\/\/infundpros.com\/?p=3199"},"author":{"name":"Press Room","@id":"https:\/\/infundpros.com\/#\/schema\/person\/87f7e632b195ea95c91503d9281f5eff"},"headline":"Netflix Stock Soars. How Its Latest Earnings Won Over Wall Street.","datePublished":"2023-10-19T12:55:49+00:00","dateModified":"2023-10-19T12:55:50+00:00","mainEntityOfPage":{"@id":"https:\/\/infundpros.com\/?p=3199"},"wordCount":435,"commentCount":0,"publisher":{"@id":"https:\/\/infundpros.com\/#organization"},"articleSection":["Markets"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/infundpros.com\/?p=3199#respond"]}]},{"@type":"WebPage","@id":"https:\/\/infundpros.com\/?p=3199","url":"https:\/\/infundpros.com\/?p=3199","name":"Netflix Stock Soars. How Its Latest Earnings Won Over Wall Street. | inFundPros","isPartOf":{"@id":"https:\/\/infundpros.com\/#website"},"datePublished":"2023-10-19T12:55:49+00:00","dateModified":"2023-10-19T12:55:50+00:00","description":"Netflix\u2019s latest earnings are convincing analysts that the streaming company can make more money from its members. A crackdown on password sharing is","breadcrumb":{"@id":"https:\/\/infundpros.com\/?p=3199#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/infundpros.com\/?p=3199"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/infundpros.com\/?p=3199#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/infundpros.com\/"},{"@type":"ListItem","position":2,"name":"Netflix Stock Soars. How Its Latest Earnings Won Over Wall Street."}]},{"@type":"WebSite","@id":"https:\/\/infundpros.com\/#website","url":"https:\/\/infundpros.com\/","name":"Fintech Advance","description":"Latest Finance and Tech News and Updates","publisher":{"@id":"https:\/\/infundpros.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/infundpros.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/infundpros.com\/#organization","name":"Fintech Advance","url":"https:\/\/infundpros.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/infundpros.com\/#\/schema\/logo\/image\/","url":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/tech-logo.png","contentUrl":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/tech-logo.png","width":409,"height":70,"caption":"Fintech Advance"},"image":{"@id":"https:\/\/infundpros.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/infundpros.com\/#\/schema\/person\/87f7e632b195ea95c91503d9281f5eff","name":"Press Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/infundpros.com\/#\/schema\/person\/image\/","url":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png","contentUrl":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png","caption":"Press Room"},"sameAs":["https:\/\/infundpros.com"],"url":"https:\/\/infundpros.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/posts\/3199","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3199"}],"version-history":[{"count":1,"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/posts\/3199\/revisions"}],"predecessor-version":[{"id":3201,"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/posts\/3199\/revisions\/3201"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/media\/3200"}],"wp:attachment":[{"href":"https:\/\/infundpros.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3199"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3199"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3199"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}