Netflix is making some big changes, but its stock may need to ‘take a pause’

After languishing last year, Netflix NFLX shares started 2023 in positive territory in the lead-up to the company’s Thursday afternoon earnings report, and they were poised to build on those gains in Friday’s session after Netflix showed better-than-expected subscriber trends for its fourth quarter and indicated it would start its clampdown on... Now the question is how those efforts will affect the stock.

But that doesn’t necessarily mean Netflix’s stock will roar back in the short run. Cahall expects it to “take a pause” in the first half of the year, since the company’s first-quarter results could be negatively affected by the timing of hot content. MoffettNathanson’s Michael Nathanson wrote that such efforts could be “more of a challenge” given that angry customers could “churn off Netflix out of spite.”

“If we have an issue with the stock, it is that it has run too far and too fast given the fundamentals in our model, the risks in the outcome and the risks relative to other investment choices,” Nathanson continued. His experience covering the name, he said, leads him to conclude that “Netflix’s operations are more complicated and volatile than Excel spreadsheets would suggest.

Loans Loans Latest News, Loans Loans Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Nexo Capital Inc. to stop offering of crypto lending product, pay $45 million penalty: SECU.S. securities regulators on Thursday charged Nexo Capital Inc. with failing to register the offer and sale of its retail crypto asset lending product. To...
Source: MarketWatch - 🏆 3. / 97 Read more »

Breakingviews - Davos, Inc. finds reasons to be less gloomyWhen the chairmen of some of the world’s largest companies got together behind closed doors at the World Economic Forum this week, they had plenty of reasons to feel sombre. Higher interest rates are putting a brake on economic growth, trade tensions are fracturing supply chains, and investors have just suffered their worst year since the 2008 financial crisis. Yet when the assembled crowd were asked how many of the companies represented had reported better profits last year, a majority raised their hands. We are amidst deep crisis and these people are digging to find positives. Why not accept the situation and strive towards finding amicable solution.
Source: Reuters - 🏆 2. / 97 Read more »