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- Netflix (NASDAQ:NFLX) was in the spotlight Wednesday when Wedbush Securities removed the streaming giant from its list of best ideas amid “great expectations.”
- “We are removing NFLX from [Best Ideas List] but we maintain our Outperform rating as we continue to see drivers to expand revenue, earnings and free cash flow at least to the level of the lofty expectations out there right now,” the company wrote in an investor note. “However, we believe it will be much more difficult for Netflix to impress investors in 2024 compared to Netflix. 2023.”
- Actions increased slightly in pre-market trading.
- Some of the drivers of Netflix’s growth, which its shares have seen, are likely skip 34% from the beginning of the year e 92% compared to the past yearare “included in the price”, including crackdown on password sharing.
- The advertising tier, launching in November 2022, still has “significant growth” ahead of it, although not yet growing, sad Wedbush.
- “Once realized, it will be able to expand significantly over time and contribute significantly to earnings growth,” the company said. “We believe it will reach accretion this year and should be the main growth driver in 2025.”