Wall Street analysts have increased price forecasts to stream stocks from leading Netflix (NFLX), suggesting a double-digit rise. On Monday, Seaport Research Partner analyst David Joyce upgraded his NFLX stock to buy from neutral later on Monday, hiking his price target from $1,230 to $1,385. At the time of pressing, the stock was trading at $1,186.
After many users decide to boycott the platform, a day after NFLX stock fell by 9%, a forecast hike comes. Elon Musk Netflix Boycott has gained serious traction across social media platforms, causing massive subscription cancellations among users. As a result, the NFLX’s market capitalization exceeded $200 billion. However, Wall Street still appears to be on a Netflix train, suggesting rebounding and climbing further for stock inbounds.
Seaport research analyst David Joyce argues that Netflix’s advertising business is on the verge of a major boom that should extend its stock in the coming months. “We believe that the recently relaxed stock momentum could be compiling +30% profit (annual) than monetization momentum related to advertising infrastructure builds,” Joyce wrote in a note to client this week.
Seaport analysts added that Netflix (NFLX) is set up to turn on afterburners by developing a low-cost, ad-supported subscription tier. After years of building infrastructure to support its ability to provide advertising to its audience, Joyce suggests that Netflix will double its advertising revenue this year to $3.1 billion, potentially reaching $16 billion by 2030.
“While large competitors like Amazon Prime are still concerned, in some cases (France) have been able to move faster than Netflix in certain aspects of testing AD models and partner content, we believe that using Netflix and content quality will continue to drive significant growth,” Joyce said. NFLX fell 4% last month, but has risen by 34%.
