“NFLX’s first quarter earnings may be controversial to some — mostly because of the light second quarter [subscription] outlook — but we think there’s much more to like here than not,” J.P. Morgan analyst Doug Anmuth said in a note to clients after the report. “We continue to believe that Disney+ will not be a major threat to NFLX subscriber numbers given NFLX’s quality & quantity of content, & that Netflix/Disney+ will not be an either/or decision.”
There’s still room for shares to go higher, Goldman Sachs analyst Heath Terry said.
“As Netflix’s content investments, distribution partnerships and marketing spend drive subscriber growth significantly above consensus expectations and the company approaches an inflection point in cash profitability, we believe shares of NFLX will continue to significantly outperform,” he said.
The reaction from analysts at Credit Suisse was a bit more subdued.
“Overall, while not the net add beat many were hoping for, we believe outlook commentary was quite bullish, especially record first half paid net additions in the face of record price increases, revenue growth accelerating the next few quarters., and a very strong second half content slate,” analyst Doug Mitchelson said.
Here’s what else analysts think of Netflix’s earnings report: