Netflix, Inc. (NASDAQ: NFLX) beat expectations on total subscriber adds, EPS and revenue but the sell-side reaction was mixed with bears worried about lackluster growth in U.S. subscribers and heavy spending on content as competition ramps up.
The mixed results on subscriber adds, strong internationally but below expectations at home, and weak guidance in the face of competition from new cheaper streaming competitors Apple Inc. (NASDAQ: AAPL) and Walt Disney Co (NYSE: DIS) had analysts undecided as a group on the value of the stock now.
Investors also seemed wary, with the stock trading down about 2% to $330.97 per share on Wednesday.
The Analysts
BofA's Nat Schindler reiterated a Buy rating and $426 price target on Netflix.
Morgan Stanley's Benjamin Swinburne kept an Overweight rating and $400 price target on the stock.
Wedbush analyst Michael Pachter reiterated an Underperform rating and lowered his price target from $188 to $173.
Instinet's Mark Kelley remained Neutral and kept a $330 price target on the stock.
Credit Suisse analyst Douglas Mitchelson kept an Outperform rating and $440 target price on the stock.
Wells Fargo's Steven Cahall revised his 2020 earnings estimate downward, while keeping a $265 price target and Underweight rating.
KeyBanc's Andy Hargreaves maintained a Sector Weight rating with a $342 fair value estimate.
Needham's Laura Martin continues to have an Underperform rating on the stock.
See Also: Here's How Much Investing $100 In Netflix Stock Back In 2010 Would Be Worth Today
The Theses
Bears pointed to the lackluster guidance for subscription adds in the first quarter, 7 million versus the consensus Street expectation of 8.9 million. But cash burn may ...
