Investors eagerly await updates from Netflix regarding the progress of its ad subscription plan and pricing strategy. However, some analysts have expressed concerns that changes in these areas could potentially hinder future growth.
Worries Regarding Growth
Wolfe analyst Peter Supino recently downgraded Netflix from Outperform to Peer Perform and eliminated his previous price target of $500 for the stock. Supino expressed concerns about the company's future growth prospects.
Although Netflix has the potential to develop a massive advertising business in the long run, Supino worried about growth forecasts for 2024-2025. He also highlighted that revisions in pricing could potentially act as a headwind for the streaming video giant.
Stock Performance and Investor Disappointment
Over the last three months, Netflix shares have fallen by 21%. In September, investors were left disappointed by what some analysts interpreted as cautious remarks from a company executive regarding profitability and growth.
In conclusion, while investors eagerly await updates on Netflix's ad subscription plan and pricing strategy, concerns regarding future growth loom large for the streaming giant.