NFLX Hits Another Record on Wednesday, Target Price being Rasied
$Netflix(NFLX)$ Stock Hits Another Record on Wednesday.
All Time High: Who Will Drive the Year-End Rally?
$Netflix(NFLX)$ price-target raised to Wall St. high of $1,100 (from $925) at Pivotal Research:
"Post the (mostly) successful Tyson/Paul fight, which was streamed by a massive ~65M households (and likely ~150M+ viewers) we raised our medium/long term subscriber and ARPU forecasts, which combined with a modest increase in our terminal EBITDA multiple led to a $175 increase in our NFLX YE’25 target price to $1,100.
We use the term “mostly” given the massive demand led to some streaming issues with certain households early in the broadcast. We view the event as a (very) successful learning experience for NFLX and expect these technical issues will not happen again with future live events. Importantly, given the success of the Tyson/Paul fight we expect Netflix to accelerate its offerings of “eventized” live programming, which further enhances NFLX’s ability to offer households regular compelling content (juiced by the fact their competitors are now selling previously exclusive content to NFLX) = likely lower subscriber churn and greater ability to take price. This led us to make the aforementioned changes to our model (higher long-term subscriber/ARPU forecasts). The NFLX service remains a highly compelling, frankly relatively inexpensive, entertainment alternative for consumers, which bodes well for future subscriber/ARPU growth."
$Netflix(NFLX)$ Revenue by Region: $9.825B rev (+15.0% YoY, +16.8% LQ)
UCAN $4.322B rev (+15.7% YoY, 44% of Rev) 84.8 Paid memberships at end of period (+9.7% YoY, +0.7 net additions) $17.1M Average Revenue per Membership+4.7% YoY)
EMEA $3.133B rev (+16.3% YoY, 32% of Rev) 96.1 Paid memberships at end of period (+14.8% YoY, +2.2 net additions) $11.0M Average Revenue per Membership+0.1% YoY)
LATAM $1.241B rev (+8.6% YoY, 13% of Rev) 49.2 Paid memberships at end of period (+12.7% YoY, -0.1 net additions) $8.4M Average Revenue per Membership-5.1% YoY)
APAC $1.128B rev (+19.0% YoY, 11% of Rev) 52.6 Paid memberships at end of period (+24.0% YoY, +2 net additions) $7.3M Average Revenue per Membership-4.1% YoY)
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