NFLX - Is it too late to buy Netflix stock after a 16% post-earnings gain?

2023-10-19 14:14:18 ET

Netflix Inc (NASDAQ: NFLX) is up more than 15% today after reporting a blockbuster quarter that hardly had anything to not like.

Bernstein remains neutral on Netflix stock

Still, Laurent Yoon – a Bernstein analyst did not find it enough to upgrade the stock.

On Thursday, he agreed that the management deserves a huge award for how good of a quarter they just delivered. Still, Yoon stuck with his “market-perform” rating on Netflix stock today and said:

Longer term, we return to the fundamental question – what is the narrative beyond near-term sub growth driven by paid sharing? What does 2025 and beyond look like.

Note that Netflix added a whopping 8.76 million subscribers in its Q3 versus 5.49 million only expected. Its shares are now up 35% for the year.

Netflix is trading above Yoon’s price target

Yoon did raise his price target on Netflix Inc this morning to $390 – but the media stock already trades well above it.

The Bernstein analyst is convinced that international markets can help drive organic sub growth for the streaming giant moving forward. But “local content availability” is a limiting factor on that front, he added.

More importantly, Yoon is not the only one that remained neutral on Netflix stock despite the blockbuster quarter. Goldman Sachs analyst Eric Sheridan also reiterated his $400 price target on NFLX today that does not suggest any further upside from here.

Last night, the mass media company also issued guidance for its current quarter that was roughly in line with Street estimates ( find out more ).

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