Despite this week’s massive stock market rebound, Netflix (NFLX) stocks have fallen over the past five days. The NFLX slump, down 4.5% since Monday, is a surprise not only because of its recent success in the tech market, but also because of how Netflix played this year. YTD and NFLX are up 39%, and that number continues to be successful since 2020.
Despite the confusing slides this week, analysts are still bullish on Netflix stocks. An analyst at Evercore ISI, led by Mark Mahaney, wrote in a memo that Netflix is one of the “lowest risky” large internet names heading towards revenue. They cited strong subscriber satisfaction trends and increased traction in the ad layer. “NFLX has a very consistent and recent track record of exceeding revenue and operating profit guidance,” Mahoney said.
Netflix (NFLX) stocks rose nearly 100% last year, releasing investors’ forecasts from Water. It will be one of the best-performing S&P 500 members over that period, but has driven the valuation to 45 times its expected revenue next year. Therefore, there is growing concern among Wall Street experts that the stock will ultimately face a sale. The “slump” describing Netflix’s performance this week is not a word at all, but the decline is certainly interesting. Investors are hesitant ahead of the streaming giant’s next revenue release.
Netflix (NFLX) revenues revealed next week
Netflix is expected to report its second quarter revenue on July 17th. JPMorgan analysts expect revenues of approximately $11 billion and operating profit of $3.7 billion. The company’s 2025 outlook is forecast to close to $45 billion, approximately 30%, and free cash flow of $9 billion. Additionally, Netflix’s advertising-backed business reaches approximately $94 million per month worldwide, with each Evercore ISI. Advertising revenue is expected to double in 2025.
At press time, Netflix Stock (NFLX) is trading near the top of the 52-week range. Stocks are also traded above a simple 200-day moving average. CNN analysts predict that they will trade at a median of $1,200 over the next 12 months, not exceeding $1,600. Alternatively, in two weeks, a rough earnings report will bring the stock price down and you can go back to $800.
