Key Stats for Netflix Stock
- Price change for Netflix stock in last 6 months: -26%
- $NFLX Stock Price as of Oct. 19: $70
- 52-Week High: $125
- $NFLX Stock Price Target: $91
Now Live: Discover how much upside your favorite stocks could have using TIKR’s new Valuation Model (It’s free)>>>
What Happened?
Netflix (NFLX) said on Monday that film division head Dan Lin will leave after nearly three years. It is the second senior exit in less than a week.
Last Thursday, the company said content chief Bela Bajaria would leave after almost a decade. Former Disney executive Peter Rice will replace her and will also oversee films until a new head is named.
Lin led the film group during a big run. He oversaw “K-pop Demon Hunters,” which became a breakout hit and won an Academy Award and helped back Netflix’s feature animation plans.
Before Netflix, Lin was a producer on “Sherlock Holmes” and the Lego movies.
He also held a senior role at Warner Bros. Pictures.
The timing is tricky. Engagement is under a spotlight. Co-CEO Ted Sarandos recently said Netflix is “not growing as fast as I want us to.”
Engagement data points to people spending more time on creator-led platforms like YouTube. Netflix is also cutting about 6% of its workforce.
It reports Q3 results Tuesday after markets close.
See analysts’ growth forecasts and price targets for Netflix stock (It’s free) >>>
What the Market Is Telling Us About Netflix Stock
For Netflix stock, the leadership changes raise a fair question. Is the content strategy changing? Two top creative leaders are leaving in one week, right before earnings.
Still, the last earnings call showed a business in decent shape, given management guided to 13% to 14% revenue growth for the full year.
That is about $6 billion in new revenue. Q2 revenue growth was 12%, and the Q3 guide was 12% as well.
Engagement is the weaker spot, as view hours grew just 2% in the first half, and management said hours are not the only measure of value.
Live events drive sign-ups, even though they bring fewer hours. They also said content spending would rise about 10% this year.
Netflix is also pushing into new formats. It has added live events, video podcasts, and cloud games. Management said podcasts bring extra viewing during the day.
Cash returns remain strong. Netflix bought back $4.7 billion of shares in Q2 and has about $27 billion left on its authorization.
So Netflix stock is caught between solid financial growth and worries about attention.
Investors holding Netflix stock will watch Tuesday’s report for signs of how engagement is holding up. Any early word on who leads films next could also matter for Netflix stock.
Estimate a company’s fair value instantly (Free with TIKR) >>>
So what is Netflix stock actually worth?
TIKR lets you forecast the future price of any stock in less than a minute. Just enter a few assumptions into TIKR’s valuation model and see what NFLX stock could be worth. Start from Wall Street consensus estimates, or adjust the inputs to reflect your own view of the business. It’s free to use.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
