Streaming giant Netflix (NASDAQ:NFLX) is on a roll lately. Yesterday, it pulled in new gains with a terrific report from Oppenheimer. Today, it grabbed new attention at Citi as it started a 30-Day Catalyst Watch. This initially gave it a boost. However, shares have since given up their gains and are hovering around the flatline at the time of writing.
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Citi—via analyst Jason Bazinet—noted that the ad tier on Netflix will have officially launched six months ago when Netflix releases its second-quarter earnings next month. That should bring along with it some meaningful news about just how many users were turning to that tier, particularly in light of the modifications to the Basic tier and the password crackdown. The combination of those two factors should drive more users to the ad-supported tier than other premium-priced tiers.
However, some other details may have hurt Netflix in the short term. The cancellation of “Warrior Nun,” for example, was a fan-favorite show that drew plenty of said fans to call for its revival. Revived it will be, as it turns out, just not on Netflix. At least for now. Further, it didn’t much help that Netflix also brought back “Titanic” for streaming starting July 1, only days after the OceanGate Titan was found destroyed at the bottom of the ocean, all aboard dead, while touring the Titanic wreckage.
Netflix may be a bit volatile right now, but analysts are largely on its side. Netflix stock is considered a Moderate Buy by analyst consensus, backed up by 19 Buy ratings, 13 Holds, and three Sells. With an average price target of $406.26, however, it also comes with 5.59% downside risk.
