Netflix's Scale Should Protect Its Dominance, Says Analyst

Benzinga

Netflix faces rising competition after the Paramount-Skydance merger and potential Warner Bros. bid. Bank of America kept a Buy rating and $1,490 target, citing ad growth and Amazon DSP integration despite recent stock underperformance.

Transcript

00:00It's Benzinga, bringing Wall Street to Main Street.

00:02Netflix faces renewed competition after the Paramount Skydance merger and reports of a

00:06possible Warner Brothers discovery bid according to Bank of America.

00:10Urban expects third quarter revenue of $11.53 billion, operating income of $3.63 billion,

00:15matching guidance.

00:16Analyst Jessica Rafe Ehrlich maintained a buy rating and a $1,490 price target,

00:21implying 22% upside, setting continued growth from advertising and live events.

00:25Netflix shares have dropped 4% since early September, lagging the S&P 500's 2% gain

00:30due to competition worries and merger speculation tied to the Paramount Skydance deal

00:35and a possible Warner Brothers bid.

00:37Netflix's integration with Amazon's DSP in the fourth quarter should expand ad buying options

00:41and boost demand.

00:43Bank forecasts earnings per share of $26.21 in 2025, rising to $32.61 in 2026 and $40.26

00:53in 2027.

00:54Revenue reaching $56.85 billion by 2027.

00:58Shares around 0.58% to $1,208.28 on Wednesday.

01:03For all things money, visit Benzinga.com.

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