When Netflix Inc. releases its quarterly results on Jan. 23, one thing will take center stage: advertising.
Netflix’s new advertising-supported service has exceeded expectations and garnered attention from Oppenheimer analysts, who have raised their price target for the stock to $600, the highest on Wall Street.
According to Oppenheimer analyst Jason Helfstein, the rapid growth of this new service indicates significant potential for subscription growth in 2024. Helfstein has increased his estimates for net additions in the fourth quarter to over 10 million and for 2024 additions to over 24 million.
Wells Fargo analysts have also revised their estimate for Netflix net additions to 10.4 million based on internal research.
Furthermore, BofA Securities analyst Jessica Reif Ehrlich has raised her price target on Netflix’s stock to $585 and maintained her buy rating. KeyBanc Capital Markets analyst Justin Patterson has also increased his price target to $545 and maintained an overweight rating.
Reif Ehrlich states that “Netflix has won the ‘streaming wars'” in a note.
While the shares of Netflix were slightly down to $477.74 in late afternoon trading on Wednesday, the success of its advertising-supported service has undoubtedly set high expectations for the company’s future growth. # Wall Street Remains Bullish on Digital Ad Market
Wall Street analysts continue to express optimism about the digital ad market, which has shown resilience as we enter 2024. According to Piper Sandler analyst Matt Farrell, the market is expected to experience a growth rate of 8.7% in the fourth quarter, with an acceleration towards the end of the period.
