On Thursday, Rosenblatt Securities analysts maintained a Neutral rating on Netflix (NASDAQ:NFLX) stock, with a price target of $680.00.
The analysts commentary focused on the impact of Netflix’s foray into sports content, which is expected to be a key topic in the company’s fourth-quarter 2024 earnings report.
The analyst anticipates that the inclusion of sports may result in fourth-quarter actuals surpassing the company’s own guidance, while potentially leading to lower guidance compared to estimates for the first quarter of 2025.
This is notably the last quarter when Netflix will report and provide guidance on subscriber numbers.
The firm’s analysts noted that "Cost per view and hour for sports deals to date seems to be well above Netflix’s portfolio averages."
Furthermore, "ad sales, and outperformance in audiences could be powerful mitigants, and create potential to argue that Netflix has a better mousetrap than TV for sports, which could accelerate secular disruption in TV to Netflix’s advantage," they said.
The move into sports broadcasting is seen as a strategic shift for Netflix, and the analysts suggested that if successful, it could position Netflix as a more effective platform for sports compared to traditional television.
This could potentially accelerate the ongoing shift from conventional TV to streaming services, working in Netflix’s favor.
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