Netflix Inc NFLX shares are trading higher Monday following a positive analyst update from Morgan Stanley.
What Happened: Morgan Stanley analyst Benjamin Swinburne maintained Netflix with an Overweight rating on Monday and raised the price target from $475 to $550.
On Friday, Netflix announced that it will report its fourth-quarter financial results after the market close on Jan. 23. According to estimates from Benzinga Pro, the company is expected to report earnings of $2.20 per share on quarterly revenue of $8.705 billion.
Last quarter, Netflix beat analyst estimates on both the top and bottom line driven by higher-than-expected member growth. The streaming giant said its ad tier continued to grow last quarter with memberships up almost 70% on a quarter-over-quarter basis. Investors will be paying close attention to member growth in the fourth quarter.
Netflix shares are up approximately 65% year-to-date largely driven by the company's password-sharing crackdown, the introduction of an ad tier and other plan pricing adjustments.
Check This Out: Netflix's Stock Journey In 2023: Navigating A 6% Decline Amidst An Impressive 51% Year-To-Date Surge
NFLX Price Action: Netflix shares were up 3.21% at $487.24 at the time of publication, according to Benzinga Pro.
Photo: Tumisu from Pixabay.
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