Netflix (NFLX.US) stock rose nearly 8.0% after Atlantic Equities upgraded the streaming giant to overweight from neutral and increased its price target to $283, up from $211, saying company's lower-cost, ad-supported subscriber tier, which it plans to launch in several countries on November 1 2022, could boost its share price by 26%.
According to analyst Hamilton Faber, Netflix could achieve average revenue per user (ARPU) of $26 per month from advertising, more than three times the rate of Disney's Hulu.
Netflix (NFLX.US) stock is trading around 65.0% below it's all-time high from November 2021 as slowing subscriber growth caused panic among investors. Price has been moving sideways in recent weeks, however prospects of higher ad revenue growth provided some fuel for bulls today. Nevertheless only a decisive break above the upper limit of the consolidation zone at $251.60, would be a sign of potential trend reversal. Source: xStation5
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