JPMorgan remains positive on Netflix shares heading into the Q3 earnings report on Thursday, October 17. However, the firm recognizes “elevated expectations,” with the stock up 17% from the August lows and sitting at all-time highs. Nonetheless, JPMorgan remains “bullish” on Netflix’s ability to grow revenue in the mid-teens in 2024 and 2025, low double-digits in 2026, further expand margins, and drive multi-year free cash flow growth. Paid Sharing has become a “more normal course of business, but remains a meaningful driver,” the analyst tells investors in a research note. JPMorgan believes the company can become a major advertising player as scale and monetization build in 2025 and beyond. It sees upside to Netflix’s 2024 free cash flow guide and keeps an Overweight rating on the shares with a $750 price target.
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