Netflix surges in premarket trade amid price target increases


Robyn Beck | AFP | Getty Images

Netflix CEO Reed Hastings gives a keynote address, January 6, 2016 at the CES 2016 Consumer Electronics Show in Las Vegas, Nevada.

Netflix shares soared in premarket trade Wednesday as Wall Street gushed about its third-quarter earnings beat.

The stock was seen trading 11 percent higher in the premarket to a price of $385.53 at around 4:40 a.m. ET.

The U.S. streaming giant on Tuesday revealed that it had picked up 6.96 million subscribers in the third quarter of the year, against analyst expectations of a more than 5 million increase in users. The company is seeing massive growth beyond its home market, according to the numbers. Out of the 6.96 million additional users it reported, 5.87 million of those came from overseas.

Netflix’s third-quarter revenues came in line with expectations, at $4 billion, while earnings per share (EPS) beat estimates, at 89 cents versus the 68 cents forecast by analysts.

Multiple analysts revised their stock price target for Netflix, with Goldman Sachs being among the most bullish, lifting its target to $480 from $430. Here’s a rundown of some other price target hikes:

  • Morgan Stanley raised its target price to $475 from $450.
  • J.P. Morgan raised its target price to $450 from $415.
  • Raymond James raised its target price to $435 from $400.
  • Canaccord Genuity raised its target price to $470 from $450.

Both Goldman Sachs and Raymond James cut their price targets for Netflix on Tuesday, ahead of the company’s financial results.

Morgan Stanley’s Benjamin Swinburne and other analysts at the broker noted Netflix’s success in international markets, paying particular attention to performance in Europe. Although it also noted that the firm is seeing incremental growth in Asia as well.

“Geographically, we believe continental Europe is accelerating in growth including markets like France and Germany,” the analysts said in a research note. “New local original fare in India is also helping Asia begin to inflect, although it remains early days.”

Source link

Products You May Like

Articles You May Like

Tech execs tell me they support Trump’s trade policy on China
5 tips to help you become rich
Invest in gold here if you’re worried about stocks
Alex Jones, subscription Shuffles, and media’s wild summer
Buying last year’s losers might be the way to beat the market in 2019

Leave a Reply

Your email address will not be published. Required fields are marked *