on Netflix (NFLX-US) after the disappointing earnings report, analysts warned that investors who want to take advantage of the opportunity to buy the dip should think twice.
“Even if it tumbled in premarket trading on the 21st, we were unimpressed,” said Jeff Wlodarczak, an analyst at Pivotal Research Group. “With a lackluster first quarter and a weak second quarter on a seasonally adjusted basis, Netflix stock is a good place to be. It’s a backwater, and it has to prove that its streaming business has significant room to grow.”
Netflix shares tumbled 21% to 408 in premarket trading on the 21st as the company reported slowing subscriber growth and operating margins in its fourth-quarter earnings report. Dollar.The company explained in its earnings report that the streaming market is highly competitive and strongDollarThe main reason for poor performance.
According to its earnings data, Netflix added 8.28 million global paid subscribers in the fourth quarter of 2021, beating analysts’ forecast of 8.13 million. But the financial outlook is not very optimistic.
The company said it expects to add 2.5 million new users in the first quarter, compared with 3.98 million in the first quarter of last year.
Morgan Stanley, Keybank and Barclays all downgraded Netflix on the 21st.
But Wlodarczak is still bullish on Netflix in the long-term, even if he doesn’t think there will be any performance in the short-term. “Ultimately we think that Netflix’s growth is still going on, just at a slower pace, because of the huge demand driven by the epidemic blockade. Over time, we expect its growth User growth will normalize and share prices will recover.”
The analyst reiterated Netflix’s buy rating but raised price target from 750 Dollarcut to 550 Dollar。