All eyes will be on Netflix (NFLX) Tuesday afternoon when the streaming giant reports its first quarter earnings. Citi Managing Director Jason Bazinet is bullish on the company, giving Netflix a buy rating and a $400 price target, but he still sees challenges ahead. "The problem is you've got two narratives running through the net ad number," Bazinet says. "You've got the ad tier, which I think is going to be quite positive for net ads over the next three to four years...[but] the noise part of it is they're simultaneously cracking down on password sharing." Bazinet also tells Yahoo Finance how the combination of these factors could give investors pause Tuesday afternoon, with many focusing on when Netflix will crackdown on password sharing in the United States. However, Bazinet also believes that the long-term picture is a rosy one for Netflix. "We just need to get through all of this password-sharing noise and just get back to the signal, which is the benefit of the ad tier." Listen to Dave Briggs and Ines Ferre's entire interview here. KEY VIDEO MOMENTS: 0:08 Bazinet on the challenges Netflix and its investors face this earnings season 0:41 Bazinet on how investors could react once the numbers come out Read More...
All eyes will be on Netflix (NFLX) Tuesday afternoon when the streaming giant reports its first quarter earnings. Citi Managing Director Jason Bazinet is bullish on the company, giving Netflix a buy rating and a $400 price target, but he still sees challenges ahead.
“The problem is you’ve got two narratives running through the net ad number,” Bazinet says. “You’ve got the ad tier, which I think is going to be quite positive for net ads over the next three to four years…[but] the noise part of it is they’re simultaneously cracking down on password sharing.”
Bazinet also tells Yahoo Finance how the combination of these factors could give investors pause Tuesday afternoon, with many focusing on when Netflix will crackdown on password sharing in the United States. However, Bazinet also believes that the long-term picture is a rosy one for Netflix.
“We just need to get through all of this password-sharing noise and just get back to the signal, which is the benefit of the ad tier.”
Listen to Dave Briggs and Ines Ferre’s entire interview here.
KEY VIDEO MOMENTS:
0:08 Bazinet on the challenges Netflix and its investors face this earnings season
0:41 Bazinet on how investors could react once the numbers come out
Read More
