Netflix, Inc. (NASDAQ: NFLX) stock is in the spotlight after the company raised its prices, resulting in several analyst firms weighing in on the company’s future prospects. Earlier this month, Netflix also reported fourth quarter results. The company’s EPS came in at $0.30, better than the estimated $0.24.
Revenue in the quarter came in at $4.19 billion, vs. $4.21 billion forecast by Refinitiv consensus estimates.
Netflix, Inc. (NASDAQ: NFLX) added a whopping 1.53 million domestic subscribers in the quarter, better than the analyst forecast of 1.51 million. International subscriber additions totaled to 7.31 million, better than the FactSet forecast of 6.14 million.
Netflix’s first quarter of 2019 forecast for subscription growth came in below expectations. The company expects to add 1.6 million subscribers in the US in the first quarter, down from the expected 2.3 million subscribers. This bleak forecast dented the stock performance over the last few days. But we believe Netflix remains the biggest growth tech stock for 2019.
Piper Jaffray analysts Michael Olson and Yung Kim said in a recent report that international subscriber growth should be the “single most important metric” to investors for buying the stock. The firm upgraded their price target for Netflix stock to $440 from $430.
Analysts are also shrugging off market’s concerns amid Netflix, Inc. (NASDAQ: NFLX) price hikes. Netflix has penetrated the market pretty strongly, and slight price hikes would not negatively affect the company’s loyal user base. Trading platform Ayondo Markets’ analyst Jordan Hiscott, who expects Netflix to reach $423 by summer, believes that Netflix is no longer a startup. The company has already disrupted the media industry, according to Hiscott.
The quality and diversity of content that Netflix, Inc. (NASDAQ: NFLX) is providing is peerless. That’s why slight price hikes aren’t affecting the company. Streaming industry research platform Streaming Observer recently conducted a survey to gauge the consequences of Netflix price hikes. The survey indicates that about 71% of Netflix subscribers won’t cancel their subscription even after the increased prices.
Investment banking firm Raymond James recently reiterated their “Buy” rating for Netflix stock. The firm gave a price target of $470 to Netflix, up from their previously given target of $450.
Earlier in January, Goldman Sachs gave a bullish rating for Netflix and added the stock to its “Conviction List.”