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Investing.com - Bernstein maintained its Outperform rating and $1,390.00 price target on Netflix (NASDAQ:NFLX) Monday, addressing concerns about the streaming giant’s content licensing relationships. The streaming leader, currently trading at $1,188.44, has demonstrated remarkable strength with a 70% return over the past year and maintains a perfect Piotroski Score of 9, according to InvestingPro data.
The rating reaffirmation comes amid questions about Netflix’s reliance on content from Paramount and WarnerBros Discovery following reports of a potential acquisition of Warner Bros. Discovery by Paramount Global.
Bernstein’s analysis specifically examined how dependent Netflix remains on licensed content from these studios and what impact a combined entity might have if it reduced content licensing to Netflix.
The research firm concluded it is "not overly concerned about the potential impact on Netflix’s content slate" that might result from the potential acquisition of Warner Bros. Discovery.
Bernstein noted that even if a combined entity significantly reduced content licensing to Netflix, the streaming company "has options and sufficient time to mitigate the effect" of any such changes.
In other recent news, Amazon.com has secured a significant partnership with Netflix to integrate its ad inventory into Amazon’s demand-side platform (DSP). This collaboration has led Citizens JMP to reiterate its Market Outperform rating and maintain a $285.00 price target for Amazon. In a related development, KeyBanc Capital Markets has reaffirmed its Overweight rating on Netflix, setting a $1,390.00 price target, citing the partnership with Amazon Ads as a positive step for enhancing ad monetization. Bernstein also reiterated an Outperform rating for Netflix with the same price target, highlighting that the company’s stock is trading below its all-time high due to mixed second-quarter earnings results.
Meanwhile, The Trade Desk has maintained its Hold rating and $50.00 price target from Jefferies, as Amazon continues to expand its partnerships with companies like Roku, Disney, and Netflix. In other developments, Comcast’s NBCUniversal is close to finalizing a $200 million annual agreement with Major League Baseball to broadcast games on NBC and Peacock. Additionally, Netflix is reportedly finalizing a deal to stream the "Home Run Derby" for over $35 million annually through 2028. These recent developments highlight the dynamic nature of partnerships and agreements within the streaming and advertising sectors.
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