Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Netflix Defended at JPMorgan, Analyst Says 'Never Count Them Out'

Stock Markets May 13, 2022 06:22AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Netflix (NFLX) Defended at JPMorgan, Analyst Says 'Never Count Them Out'

JPMorgan) analyst Doug Anmuth reflected on the recent weakness seen in Netflix (NASDAQ:NFLX) stock.

Netflix trades over 70% lower YTD and roughly 75% from the record high. Anmuth reminds investors that “this is a 20% GAAP operating margin business that should still have positive FCF this year.”

Analysts are currently looking for $772 million in FCF for 2022, much higher than JPMorgan’s estimate of $500 million.

“We’ve seen NFLX go through tough times in the past—2007/2008 w/Blockbuster & 2011/2012 post Qwikster—among others. We’d never count them out,” Anmuth told clients in a note.

In the meantime, he shared 3 major concerns about Netflix that are coming up in conversations with investors.

  1. Lack of clarity on timing & the range of outcomes around account sharing efforts & advertising;
  2. Lack of visibility on 2H22 subscribers & limited catalysts near term;
  3. Many still don’t understand how NFLX flipped from interpreting recent soft subscriber numbers as pandemic hangover to a function of competition & higher penetration due to account sharing.

Anmuth especially paid close attention to the first subject.

“We believe an ad-supported tier is somewhat more complicated as NFLX does not have advertising in its DNA. But it does have several hundred million viewers, & the average member HH still likely spends 2+ hours/day on the platform. NFLX can partner with 3rd-parties while also building out a 1st-party sales team for bigger brand marketers. What's less understood is how many existing subscribers across Basic/Standard/Premium would trade down to an ad-supported tier,” the analyst added.

By Senad Karaahmetovic

 
Netflix Defended at JPMorgan, Analyst Says 'Never Count Them Out'
 

Related Articles

SAS and its pilots extend wage talks until Monday
SAS and its pilots extend wage talks until Monday By Reuters - Jul 02, 2022 3

STOCKHOLM (Reuters) -Scandinavian airline SAS and its pilots have agreed to extend their wage talks until Monday in the hope of averting a strike, a company executive told...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email