Options trading for Netflix (NFLX, Financial) is seeing average activity, with 236,000 contracts changing hands. Currently, call options are exceeding puts, resulting in a put/call ratio of 0.77, which is lower than the usual 0.97. Implied volatility, set at 28.97, has decreased by 0.45 and now sits below the median. This indicates an anticipated daily price movement of $21.76 for the stock. Additionally, the steepening of the put-call skew points to a heightened interest in securing downside protection.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 45 analysts, the average target price for Netflix Inc (NFLX, Financial) is $1,132.31 with a high estimate of $1,514.00 and a low estimate of $726.11. The average target implies an downside of 4.97% from the current price of $1,191.53. More detailed estimate data can be found on the Netflix Inc (NFLX) Forecast page.
Based on the consensus recommendation from 51 brokerage firms, Netflix Inc's (NFLX, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Netflix Inc (NFLX, Financial) in one year is $671.58, suggesting a downside of 43.64% from the current price of $1191.53. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Netflix Inc (NFLX) Summary page.
NFLX Key Business Developments
Release Date: April 17, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Netflix Inc (NFLX, Financial) has a strong business with over $40 billion in revenue and more than 300 million paid households, indicating a solid market presence.
- The company is leading in streaming view share and sees significant growth potential in engagement, revenue, and profit.
- Netflix Inc (NFLX) has been resilient during economic downturns, with stable retention and engagement metrics.
- The introduction of a low-cost ad-supported plan in major markets provides additional resilience and value to consumers.
- Netflix Inc (NFLX) is expanding its global content production, with significant investments in countries like the UK, Mexico, and Korea, supporting local economies and cultures.
Negative Points
- There is no five-year forecast or guidance, which may create uncertainty for investors looking for long-term projections.
- The economic environment poses potential risks, although Netflix Inc (NFLX) has not seen significant impacts yet.
- Content expenses are expected to grow in the second half of the year, which could impact operating margins.
- The advertising business is still relatively small, and while there is potential for growth, it is not yet a major revenue driver.
- The extra member accounts feature is not a significant driver of business growth, indicating limited impact on revenue.
