Netflix stock price was down on Thursday, trading at $217.02 as of 10:51 AM EDT.
Morgan Stanley kept its equal-weight rating on the streaming behemoth but warned there will be chances due to its planned advertising-supported tier, which led to a small increase in Netflix stock price ( NASDAQ:NFLX ) in premarket trade on Thursday.
The ad-supported tier, according to analyst Benjamin Swinburne, might aid Netflix in growing both its average revenue per user in developed areas as well as its total addressable market. Swinburne also has a $230 price target on Netflix ( NASDAQ:NFLX ). Because of this, Swinburne stated that “we upgrade our [U.S. and Canada] net additions outlook from modestly shrinking to modestly rising over time, but stay at or modestly below consensus.”
The company now projects that the area will add between 9 and 10 million new subscribers in 2023, but acknowledged that there is a “broad range of outcomes,” noting that every 10 basis points of monthly churn translate to 2 to 3 million net subscribers. The analyst also increased his projections for paid net additions between 2023 and 2025, with hopes for Netflix ( NASDAQ:NFLX ) to grow its subscriber base by between 9 million and 10 million annually, up from his previous projection of 8 million.
Netflix Stock Price Analytical Basis
As it implements its paid-sharing activities, Swinburne also predicted that Netflix ( NASDAQ:NFLX ) might have a “small lift” in average revenue per user. A “fraction” of the 100 million password-shared accounts will be monetized over the course of the next two to three years.
According to the analyst, if paid sharing only generates a $3 to $5 advantage each month, average revenue per user might increase by up to 900 basis points from 2022 levels. However, any advantage from more net subsc...
Click here to read the full article on PressReach.com .Subscribe to the PressReach RSS feeds:
- Featured News RSS feed
- Investing News RSS feed
- Daily Press Releases RSS feed
- Trading Tips RSS feed
- Investing Videos RSS feed
Follow PressReach on Twitter
Follow PressReach on TikTok
Follow PressReach on Instagram
Subscribe to us on Youtube