Analyst: Netflix Can't Meet Lofty Expectations

Other analysts aren't so bearish

Deputy Editor
Jan 9, 2024 at 9:04 AM
facebook X logo linkedin

Citigroup downgraded shares of streaming giant Netflix Inc (NASDAQ:NFLX) to "neutral" from "buy," citing unrealistic expectations from Wall Street. Specifically, the analyst said that investors' expectations of a 25% jump in the two-year stacked growth rate is unlikely to happen in the final quarter of 2024. 

Conversely, BMO initiated coverage on NFLX with an "outperform" rating and a $566 price target, while TD Cowen raised its target price to $565 from $500. Coming into today, 22 analysts rated the equity a "buy" or better against 14 "hold" or worse ratings, and its 12-month average target price of $479.03 is a slight discount to last night's close.

Options traders are more bearish. This is per Netflix stock's 10-day put/call volume ratio of 1.02 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than 88% of readings from the past 12 months. Echoing this, NFLX's Schaeffer's put/call open interest ratio (SOIR) of 1.25 sits in the 84th percentile of annual readings.

Those looking to weigh on NFLX's next moves should consider options, as its Schaeffer's Volatility Index (SVI) of 25% ranks higher than just 3% of readings from the past 12 months, implying these traders are pricing in low volatility expectations. 

Down 1.7% in premarket trading, Netflix stock is on track to pull back from the $485 level after coming within in a chip shot of two-year highs. The security sported a marginal year-to-date deficit ahead of today, though it's still up more than 50% over the last 12 months. 


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI