Netflix Earnings Disappoint Investors
Netflix (NASDAQ: NFLX) reported a 16% revenue growth for Q1, but shares dropped after the company kept its forward guidance unchanged following its recent drama with Warner Bros. Discovery, which ended with a $2.8 billion payout. The stock fell from around $120 to $75 per share during the acquisition’s uncertainty and hasn’t fully recovered post-earnings.
Despite a solid quarterly performance, investor reaction has been negative due to the lack of improved guidance. With a current forward price-to-earnings ratio of about 31—below its three-year average of 37—analysts indicate this might be a buying opportunity, with Seaport Research Partners raising its price target from $115 to $119 per share.
