CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We think NFLX made a mistake by disclosing it will remove subscriber data starting in Q1 ’25, as it says the business is broader with other revenue streams. And yet, investors like advertisers want to know what is the subscriber base by total/regions. Global streaming paid members ($269/sub in Q1, +16% Y/Y) will be removed as well. Debate centers around valuation and what investors are willing to pay for a growth stock as we may be entering the next phase. Reflecting slower growth than the last three years, we lower our target by $10 to $640 using a forward TEV/EBITDA of 27.8x, a 20.6% discount to three-year historical average at 35.0x. We raise our EPS estimates in 2024 to $18.55 ($17.05) and 2025 to $21.95 ($20.60). Our revenue forecast is $38.6B in ’24 and $43.2B in ’25. NFLX posts Q1 EPS of $5.28, a $0.75 earning beat. NFLX realized +14.8% Y/Y Q1 revenue growth and guides 16% Y/Y Q2 before forex adj. Operating margins were 28.1% vs. 21.1% in Q1 comps and guides 26.6% in Q2. NFLX guides FCF of $6B in ’24.