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Investing.com - Bank of America Securities has reiterated its Buy rating for Netflix (NASDAQ:NFLX) with a price target of $1,490.00, following the streaming giant’s solid second-quarter performance. The company, now valued at over $514 billion, is trading near its 52-week high with a perfect Piotroski Score of 9, according to InvestingPro data.
Netflix reported second-quarter revenue growth of 15.9% year-over-year, exceeding guidance of 15.4% when adjusted for foreign exchange effects. The growth was attributed to increased membership, higher subscription pricing, and growing advertising revenue.
The company delivered better-than-projected operating income of $3.78 billion, earnings per share of $7.19, and free cash flow of $2.3 billion, partly driven by revenue outperformance and expense timing. Growth was broad-based across all regions, with each posting double-digit foreign exchange neutral increases.
The U.S. and Canada region showed particular strength, accelerating to 15% growth compared to 9% in the first quarter, primarily due to pricing changes. Netflix also raised its full-year outlook for both revenue and operating income margin.
BofA Securities views the results as validation of its bullish thesis, noting that Netflix remains "among the best positioned companies in Media and Entertainment with sustainable growth drivers" that should prove predictable across various macroeconomic scenarios. This outlook is supported by 11 analysts recently revising their earnings estimates upward, as tracked by InvestingPro’s comprehensive research reports, which provide detailed analysis of 1,400+ top stocks.
In other recent news, Netflix reported strong second-quarter results, with a 17% year-over-year revenue growth on a foreign-exchange neutral basis. The company exceeded analyst expectations with a 45% increase in operating income, driven by higher member growth, pricing, and advertising revenues. Netflix has updated its full-year foreign-exchange neutral revenue growth forecast to 16-17%, an increase from the previous 14-17% guidance. UBS raised its price target for Netflix to $1,495, maintaining a Buy rating, while noting optimism about upcoming content releases. Loop Capital maintained its Hold rating with a $1,150 price target, citing valuation concerns despite Netflix’s raised revenue and operating margin outlooks. Rosenblatt increased its price target slightly to $1,515, also maintaining a Buy rating, and highlighted expectations for improved user engagement in the latter half of 2025. MoffettNathanson raised its target to $1,400, based on a 36x multiple of 2027 estimated earnings per share, while Canaccord Genuity reiterated a $1,525 target, noting Netflix’s outperformance in revenue and profitability. Despite these positive developments, Netflix shares saw a modest decline in after-hours trading.
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