Netflix's (NFLX) Q4 results were driven by member growth as well as higher pricing and ad revenue, UBS said in a Tuesday research report.
Management set "solid" 2026 revenue growth guidance of 12% to 14%, the firm said. The brokerage said it expects revenue growth of 13%, primarily driven by subscriber additions.
While the Warner Bros. Discovery (WBD) deal uncertainty has weighed on the stock, the company's sentiment is likely to improve as its growth prospects, monetization opportunities, and competitive moat come back into focus, according to the brokerage.
UBS expects a wider range of content and investments in live events to support engagement.
The brokerage said it reiterated its buy rating on the stock and cut its price target to $130 per share from $150.
Price: 84.07, Change: -2.98, Percent Change: -3.43
Comments