Netflix Earnings Preview: Bullish Wall Street Expects Progress on Password-Sharing Crackdown, Ad Tier

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Macquarie speaks of a 'potentially momentous' quarterly update, while peers predict signs of accelerating growth in the second half of the year.

price target on the stock. But in the headline of a Monday report, he warned investors: “Tread Lightly Into Great Expectations.”

“Buyside expectations in terms of net sub adds are almost certainly higher than Street, with the market likely looking for more like 4 million-5 million subs in the second quarter and a similar to higher level in the third quarter ,” Mahaney wrote. “If the positive intra-quarter sub trends reported by third-party tracking services are accurate, these expectations appear reasonable.

Explained Mahaney: “Thus, we would prefer to buy Netflix shares after the rather than before and have issued a tactical ‘underperform’ call on Netflix for the .” The Evercore ISI analyst also pointed out that Netflix’s stock has exceeded his $400 price target, “and we removed it from our top picks list last month, but we are sticking with ‘outperform’ rating on Netflix as we believe this stock still has legs.” He noted his bull case for Netflix, which includes its stock price possibly hitting $500 by 2024, “driven by an incremental 20-30 million subs growth from ’23 to ’25 from SAVOD and paid sharing benefits.

Many recent Netflix reports have focused on such bullish commentary. At the end of June, for example,

 

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