Netflix 2024 revenue outlook weighing on shares, says JPMorgan

JPMorgan says Netflix’s Q1 results were “very strong across the board.” However, the 2024 reported revenue outlook for 13%-15% growth was lighter than expected and Netflix will stop reporting subscribers and average revenue per user with Q1 earnings, both of which contributed to shares trading down 5% after-market, the analyst tells investors in a research note. The firm says that while the Q1 report “was very clean,” it expects pushback from the 2024 revenue growth outlook, ongoing concerns about slowdown of paid sharing benefits and advertising monetization, as well as valuation. It keeps an Overweight rating on the shares with a $650 price target.