Netflix's Warner Bros. Acquisition Faces Pressure as Analysts Cut Price Targets
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: stocktwits
- Acquisition Competition Intensifies: Paramount Skydance has sued Warner Bros. after its takeover bid was rejected and plans to launch a proxy fight, escalating the competitive pressure on Netflix's acquisition of Warner Bros., which could impact Netflix's market position.
- Stock Price Under Pressure: Netflix's stock has dropped approximately 32% over the past six months from a lifetime high of $133.91 on June 30, with increasing analyst concerns about its future performance potentially affecting investor confidence.
- Analysts Lower Price Targets: TD Cowen cut its Netflix price target from $142 to $115, while Goldman Sachs reduced its target from $130 to $112, reflecting downward revisions in expectations for Netflix's operating income and profitability, indicating market concerns over the acquisition deal.
- Optimistic Earnings Expectations: Despite the pressures, Netflix is expected to report a nearly 17% rise in revenue to $11.9 billion and a 30% increase in adjusted net profit to $0.55 per share for Q4, demonstrating resilience and potential growth in its core business.
Analyst Views on NFLX
Wall Street analysts forecast NFLX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NFLX is 139.13 USD with a low forecast of 95.00 USD and a high forecast of 160.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
36 Analyst Rating
28 Buy
7 Hold
1 Sell
Strong Buy
Current: 89.410
Low
95.00
Averages
139.13
High
160.00
Current: 89.410
Low
95.00
Averages
139.13
High
160.00
About NFLX
Netflix, Inc. is a provider of entertainment services. The Company acquires, licenses and produces content, including original programming. It provides paid memberships in over 190 countries offering television (TV) series, films and games across a variety of genres and languages. It allows members to play, pause and resume watching as much as they want, anytime, anywhere, and can change their plans at any time. The Company offers members the ability to receive streaming content through a host of Internet-connected devices, including TVs, digital video players, TV set-top boxes and mobile devices. It is engaged in scaling its streaming service, such as introducing games and advertising on its service, as well as offering live programming. It is developing technology and utilizing third-party cloud computing, technology and other services. The Company is also engaged in scaling its own studio operations to produce original content.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
