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What to do with titles from Netflix, Facebook and Bank of America? Here are some recommendations from analysts likely to move prices in the near future. Note: the author may have a totally different opinion from that expressed.
Netflix (NFLX, US $ 501.77): enough revenue to foot the bill
Netflix appears to be nearing the time when its revenues will be sufficient to fund its operations, believes Maria Ripps of Canaccord Genuity.
The largest streaming company reported strong fourth quarter financial results. The addition of 8.5 million subscribers allows it to cross the milestone of 200 million paid accounts. This accomplishment comes as several competitors have been launching their businesses for just over a year, including Disney +, Apple TV +, and HBO Max.
What catches the analyst’s attention the most is the achievement of an operating margin of 18% in 2020, an improvement of 5 percentage points. Management thinks they can reach 20% in 2021. They also mentioned that they expect to break even next year in terms of cash flow and that they will no longer need to obtain funding.
Maria Ripps believes that Netflix remains on a good momentum when it comes to content, an important element in limiting unsubscribes. She notes that the company has 500 original titles in postproduction or ready to launch. The company has also announced its intention to release at least one film per week in 2021.
She notes that the fourth season of The Crown, the new series Bridgerton and Lupine were very successful. The movie Midnight Sky, starring George Clooney as the director and lead role, was viewed by 72 million households in the fourth quarter. Christmas films were also a big hit, including Holidate and Christmas Chronicles, a production of Dolly Parton, seen by 68 and 61 million households, respectively.
Canaccord Genuity reiterates its buy recommendation and increases its target from US $ 630 to US $ 670.
Facebook (FB, US $ 251.36): at the end of its sentences?
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