Netflix (NASDAQ:NFLX) is scheduled to report its first-quarter 2023 results on April 18, after the market closes. Given the company’s expansion into new markets, the cost-effective ad-supported tier introduced in Q4, and the crackdown on password sharing, which allows users to share an account for a lower subscriber fee, Netflix’s subscriber base is likely to have increased in the to-be-reported quarter.
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Furthermore, the TipRanks’ Website Traffic Tool suggests a decent performance in the to-be-reported quarter. According to the tool, Netflix’s website traffic registered a 9% sequential rise in global visits during the quarter.
Overall, the Street expects Netflix to post earnings of $2.86 in Q1, higher than the prior-year quarter figure of $3.53. Meanwhile, analysts expect the company to report net revenue of $8.18 billion, up 3.8% from the same quarter last year.
Ahead of the company’s Q1 results, UBS analyst John Hodulik maintained a Hold rating on NFLX stock with a $350 price target. According to the analyst, the upcoming quarter will probably continue to demonstrate progress towards re-accelerating growth as new subscriber numbers could surpass the company’s projection.
What is the Price Target for NFLX?
Wall Street is cautiously optimistic about the stock with a Moderate Buy consensus rating. This is based on 16 Buy, 15 Hold, and two Sell recommendations. The average NFLX stock price target of $359.11 implies 6.1% upside potential from the current level. Shares of the company are up 14.8% so far in 2023.
Ending Thoughts
Though the company’s subscriber growth might have slowed due to a saturation in the market, Netflix remains a prominent name in the streaming space. Also, the company’s efforts to introduce innovative content and expand its presence in new markets should continue to foster expansion.
