Street View: Netflix set up to be the new TV
** Netflix NFLX.O picked up 5.1 million streaming subscribers in the third quarter, topping Wall Street estimates by more than 1 million, and said it expected higher customer growth around the holidays when Korean drama "Squid Game" returns
** Shares up 5.20% to $723.40 in premarket trade
NEAR TERM AND LONG TERM DRIVERS
** J.P. Morgan ("overweight", PT: $850) says NFLX should have double-digit percentage revenue growth in 2025 and 2026 and continued operating margin expansion; expects a U.S. standard tier price increase in the first half of 2025
** "We believe NFLX’s global scale, strong engagement (~2 hours/day), and diversified content will push NFLX toward becoming the default choice for how users consume TV, film, and other long- form content" - J.P. Morgan
** Goldman Sachs ("neutral", PT: $750) says NFLX has strong operating momentum, strong Q4 content, rising pivot to live sports entertainment and a growing advertising business that should continue to build scale throughout 2025
** Morgan Stanley ("overweight", PT: $830) says NFLX is poised to remain the largest and fastest growing streaming service in the world on the back of its additional growth levers
** "The prize - representing "TV" for the ~500mm and growing global connected TV base - is theirs to lose" - Morgan Stanley
** Jefferies ("buy", PT: $800) expects NFLX's strong Q4 content slate to help reaccelerate subscriber growth but says the 2025 content slate would be critical for maintaining subscriber growth
Reporting by Gokul Pisharody in Bengaluru
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