Credit Suisse: Don't expect Netflix's Q1 earnings to 'spark joy,' but buy the stock anyway

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Netflix's upcoming earnings report may not send the stock rallying, but the stock is still a good buy in the long run, according to a Credit Suisse analyst.

div > div.group > p:first-child"> Douglas Mitchelson, who has an outperform rating and a $440 a share price target, said subscriber growth will continue to be the primary driver for the stock. However, subscriber growth is expected to slow down dramatically.

Netflix's guidance for net additions on a quarter-over-quarter basis was also flat, which is well below a seven-year average of 1 million. In fact, Mitchelson noted that"Netflix has guided 1Q19 net adds to be the 2nd smallest sequential improvement in its history." "We believe this has happened before; after a very strong 4Q16 net add performance Netflix actually missed its 1Q17 guidance," he added.

Long term, however, the stock should be a good buy for investors as the streaming giant builds on its original content such as The Umbrella Academy, Stranger Things, and Tidying Up the analyst says.

 

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Hmmm, would Credit Suisse’s giant position with Netflix benefit if a lot of people bought the stock?

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