Alex Belov
Developers by oneinveststock.com. Analyst, investor
Should you buy Netflix stock in 2023?
Shares of Netflix (NFLX) rose by 8.54% to $342.56 by Friday, January 20, 2023 after the publication of the financial report for the fourth quarter of 2022. This is evidenced by trading data on the NASDAQ. The report was mixed. Despite a significant decline in net income, subscriber growth was faster than Wall Street analysts had expected.
– Key takeaways from the report:
– Financial results were mixed.
– Revenue was higher than Wall Street’s forecasts, while earnings were lower.
– A significant increase in the number of subscribers has been recorded.
– Operating margins are under pressure.
– The company expects moderate subscriber growth in the next quarter.
On January 19, 2023, Netflix (NFLX) stock began to skyrocket following the release of its 2022 Q4 financial report. On Friday, January 20, stock quotes rose 8.54% to $342.56. At the end of the 4th quarter of 2022, the number of paid subscribers amounted to 230.75 million people (this is 7.66 million more than in the third quarter of 2022). The increase in the number of paid subscribers was the main reason for the growth of Netflix quotes.
Revenue growth was 1.9% compared to Q4 2021. Q4 2022 revenue was $7.85 billion.
The company’s net profit decreased 11 times due to losses on bonds denominated in euros. As a result, net income amounted to $55 million. Earnings per share (EPS) amounted to $0.12 compared to $1.33 a year earlier. At the same time, Wall Street analysts expected EPS at $0.45. The size of operating profit was $550 million against $632 the previous year.
Should you buy Netflix (NFLX) stock in January 2023?
DATE: 01/20/2023
Analyst "Wolfe Research"
4.5/5
Consensus Rating = Outperform
Price Target Change for the next 12 months = $366 → $417
Percent upside potential for stocks
21.75%
In the first quarter of 2023, Netflix plans to increase revenue by 3.9% to $8.17 billion. According to the company’s forecast, net income should be $1.28 billion. Earnings per share should be $2.82, and operating margin – 19,9%. In the current quarter, the platform is going to strengthen the fight against the transfer of the password from the account without payment.
The streaming service announced that there were changes in the top management of the company. Reed Hastings (one of the co-founders of the company) will leave the post of CEO, while he will remain chairman of the board of directors. Netflix will be led by Greg Peters (COO) and Ted Sarandos (formerly co-CEO).
Analysts believe that the positive will continue in the short term. Stock quotes will try to update the highs of the current year. The company’s long-term outlook looks moderately positive. The current year for the company will be difficult. Netflix has a tough job to do to support new subscriber growth, reduce churn, and create more quality content due to increased competition.
According to oneinveststock, most analyst firms have given Netflix (NFLX) stock a buy consensus rating. The average target price is $331.00 over the next 12 months (quotations are now above the average target price). The maximum target price is $417.
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