1.75 million new paid subscribers were added to Netflix’s (NFLX:NSD) subscriber base during the first quarter of 2023. While the company’s earnings exceeded projections, its revenues fell short. In addition, Netflix delayed the implementation of its password-sharing crackdown until the second quarter, indicating that the benefits of this move may be realized in the third quarter.
Netflix Stock Forecast:
Eric Sheridan, an analyst at Goldman Sachs, believes the recent gain in NFLX stock is a result of the company’s initiatives to increase subscribers and margins through a paid sharing launch and an ad-supported subscription tier. However, Sheridan advises investors to sell NFLX stock with a $230 price target, as he believes that much of the forward operating momentum has already been priced in.
Netflix has announced that it will discontinue DVD.com, its DVD-by-mail rental service. The business has struggled in the face of competition from video streaming services, and on September 29, 2023, Netflix will ship its final discs.
Looking ahead, Netflix is intent on expanding its margins and growing its paid subscriber base. Netflix stock forecast shows a consensus rating of Buy and an average price target of $360.28 representing a potential upside of 7.97%, analysts remain cautiously optimistic about the company.
