With Netflix (NASDAQ: NFLX) about to announce its earnings after markets close on Wednesday, July 19, equity analyst Michael Nathanson has shared his opinion regarding the future stock price of one of the streaming industry’s major players.
Specifically, the founding partner and senior research analyst at SVB MoffettNathanson believes that the Netflix stock is demonstrating an exceptionally strong setup for the next 12 months, as he told CNBC’s ‘Squawk Box’ in an interview streamed on July 19.
Expected net growth
According to Nathanson, Netflix is about to post net growth for the quarter despite the previously expected losses over the password-sharing crackdown implemented in May 2023:
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“We’re expecting a big quarter out of these guys. They had prepared everyone to expect a lot of churn with the password-sharing crackdown and it looks like that hasn’t been the case. They’ve been very gentle about it so I think we’re expecting Netflix actually to post net growth this quarter.”
Indeed, the stock market expert referred to this as “a real change in sentiment,” adding that “the ad story is going to be really positive, I think the strike plays to their advantage. I haven’t been a Netflix bull, but the setup for this quarter for the next 12 months is incredibly strong.”
Netflix versus other stocks
In Nathanson’s words, Netflix’s stock has “run more than it probably should” compared to other big-cap tech stocks, but its run is the result of investors “looking for a classic media and telecom” and that “this is the one to own,” as it is “a momentum-driven stock” with strong narrative in the next 12 months.
According to him, what separates Netflix from others is the international production of content, illustrating the situation by comparing it to an automobile union strike in which international car-makers fill the void of the domestic ones:
“If you experience troubles in car manufacturing, international cars would take their place, and Netflix has such an advantage in their scale of global production that I see them taking share, much like in the pandemic – in the beginning when they took a ton of share.”
Netflix price analysis
Meanwhile, the price of the Netflix stock at press time stood at $480.06, recording an increase of 1.11% in the last 24 hours, advancing 6.94% across the previous seven days, as well as gaining 9.93% in the last month, as per the latest data retrieved on July 19.
All things considered, Netflix could indeed continue its further advance and meet the above expert’s projections, particularly if its upcoming quarterly earnings report shows positive net growth, as well as in combination with other positive developments surrounding the network.
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