NFLX
Netflix shares dive as co-founder Reed Hastings steps away
Article Summary
HOLD- Netflix Inc. (NASDAQ: NFLX) plunged more than 9% after announcing co-founder Reed Hastings will step down as chairman of the board in early 2023, ceding daily control of Netflix to co-chief executives Greg Peters and Ted Sarandos to focus on philanthropy and philanthropy.
- The company reported quarterly revenue of $12.25 billion, slightly beating expectations, but shares fell despite a $5.28 billion profit boosted by a $2.8 billion termination fee from the termination of a Warner Bros.
- Netflix declined to sweeten its offer for Warner Bros., effectively ceding the media giant to Paramount Skydance after deciding the deal was no longer financially attractive.
- Analysts noted that the company won with investors when it stepped away from the Warner bidding, with analysts noting that money saved could be invested in audience-drawing shows and potentially lucrative advertising.
Free users see 3 BUY signals per day. Premium unlocks all of them, plus instant email alerts.
See Plans
Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 16.5% | 25% | 60.0 ptsModerate (16.5%) - Decent growth |
| EPS Growth Next 5Y ? | 21.9% | 25% | 70.0 ptsGood (21.9%) - Solid outlook |
| Target Price Upside ? | 6.2% | 20% | 35.0 ptsBelow Screener (6.2%) - Target: $114.48 vs Current: $107.79 |
| Gross Margin % ? | 48.6% | 15% | 60.0 ptsSolid (48.6%) - Decent margins |
| Drawdown from 52-Wk High ? | -19.6% | 15% | 40.0 ptsMild Pullback (-19.6%) - Light entry opportunity |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About NFLX
- Netflix, Inc. provides entertainment services worldwide.
- The company offers television (TV) series, documentaries, feature films, games, and live programming across various genres and languages.
- It also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices.
- Netflix, Inc. was incorporated in 1997 and is headquartered in Los Gatos, California.