Netflix Returns to Business as Usual After Exiting Warner Bros. Discovery Deal, BofA Says

MT Newswires Live04-01

Netflix (NFLX) is heading into Q1 earnings with management likely to address its decision to walk away from the Warner Bros. Discovery (WBD) acquisition, BofA Securities said in a Wednesday note.

The firm said it expects the company to return to its core playbook of organic growth, content investment and scaling its relatively new advertising business.

BofA said recent price increases in the US show growing confidence in Netflix's pricing power, noting the move came earlier than the market expected.

The firm said the price increases also support its view that Netflix can continue to drive average revenue per user growth at a larger global scale. BofA maintained its 2026 estimates, including revenue of $51.3 billion and operating income of $16.2 billion.

The firm maintained its buy rating on Netflix and $125 price objective.

Price: 95.17, Change: -0.95, Percent Change: -0.99

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