Wedbush Bullish on Netflix Despite Stock Slump, Sees Ad Revenue Doubling by 2026
Netflix shares have tumbled 22.66% over three months despite surpassing Q4 earnings expectations, with a 7.9% decline in the past month alone. The selloff reflects investor concerns over management's guidance for accelerated expense growth in 2024.
Wedbush Securities maintains conviction with an 'Outperform' rating and $115 price target, arguing the market reaction stems from unrealistic expectations rather than deteriorating fundamentals. The firm projects Netflix's advertising revenue will double from $1.5 billion to $3 billion by 2026, with further upside through 2027.
Q4 results showed resilience with revenue climbing 17.6% to $12.05 billion and EPS growing 30.2% to $0.56, both beating consensus estimates. Phillip Securities upgraded Netflix to 'Accumulate', citing undisputed streaming leadership and pricing power.
