Here are some interesting facts about Netflix (NFLX) that you probably weren’t aware of.
The company’s stock has risen 12% since May 1 and is currently trading at the level it was before the company’s disappointing earnings report in late April.
In a new note this morning, J.P. Morgan analyst Doug Anmuth said the rebound is due to “1) reported revenue guidance in 2024 and NFLX’s decision to no longer report subscriber numbers starting in 2025; 2) an increased sense of security about both decisions, and 2) the knowledge that NFLX will not be seriously affected.” The intensity of AI-driven capital spending like Meta, Alphabet, and Amazon, and his 3) excitement about his Upfront presentation on May 16th. ”
The annual upfront is where television networks and streaming services pitch their programming and advertising products to advertisers and agencies.
Anmuth thinks Netflix will make some bullish statements at the event, which could trigger a rise in the stock price.
“Upfront expects to see an update with more than 23 million monthly active users (MAUs) in its advertising tier, and based on our conversations, investors expect to see more than 23 million monthly active users (MAUs) in the ad tier , seems to be seeking more than 35 million to 40 million MAUs in the advertising tier, as well as the latest information on future content plans and NFLX’s sports strategy. Finally, the games could get a boost as NFLX has hinted it could host two NFL games on Christmas Day later this year, giving the NFL massive global distribution. Investors in the division are looking forward to the announcement of the 3P demand-side platform, which will impact NFLX’s advertising tier and allow the company to aggressively promote its upcoming content.”
