Monetization ChallengesARM was flat in 3Q (+5% ex-FX), slowing again from 2Q, as Netflix continues to undermonetize its ad tier and expand in lower-price countries.
Subscriber Growth ConcernsKey risk includes slowing member additions in developed markets and higher-than-anticipated content costs.
Valuation ConcernsValuations look full, leading to a downgrade to NEUTRAL from ACCUMULATE to account for recent share price strength.