Netflix: stock rebounds, analysts buy

(CercleFinance.com) - Netflix shares gained 1.
2% on the Wall Street Stock Exchange after the company slightly raised its operating margin forecast for the full year 2024 to 26%, while its revenue growth target range was tightened to between 14% and 15%.

Wedbush reiterated its 'outperform' rating and $725 price target on Netflix, the day after the streaming video platform published better-than-expected quarterly results, accompanied by an increase in forecasts.

In its note, the broker highlights advertising revenues, which it expects Netflix to accelerate its contribution to revenues next year, and which should become the main driver of its growth in 2026.

'Netflix has found the right formula with global content creation, cost balancing and increased profitability', judges the broker, who sees it 'continuing to extend its profitability and generate growing free cash flow'.

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