Growth for streaming video services like Netflix (NASDAQ:NFLX) is hard to come by these days. With almost everybody having already reached a decision about what service to go with or even cutting back on streaming in the face of rampant inflation, growth is a tall order. And that tall order is getting the better of Netflix, as shares lost nearly 2% in Tuesday afternoon’s trading.
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But Netflix isn’t facing stagnation quietly; it’s making significant changes to its upper roster. Just last week, Netflix brought in new C-suite members to take over as Chief Product Officer and Chief Technology Officer. And now, Jeremi Gorman—former head of advertising sales—has been ejected to be replaced with Amy Reinhard. Reinhard has been with Netflix for quite some time, and the move was made with an eye toward putting some extra spark under ad sales. Those haven’t been going well, as advertisers are complaining that there hasn’t been much promotion of the ad-supported tier as of late.
However, there’s some growth coming in from the international market, particularly the United Kingdom. UK viewers are tuning in for a variety of series ranging from “Top Boy” to “The Crown,” and that’s driving revenue as well. Netflix reported a 12% jump in revenue in the region between 2021 and 2022, which suggests there might be a little more room there for growth. And average monthly revenue therein is also on the rise, up 14% against the previous year.
Is Netflix a Buy, Sell, or Hold?
Netflix enjoys substantial analyst support with 19 Buy ratings, 13 Holds, and one Sell, making it a Moderate Buy by analyst consensus. Further, the average NFLX price target of $470.43 offers investors 24.57% upside potential.
