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Netflix Shares Rise on Bullish Analyst Upgrade Citing Potential for Future U.S. Price Hikes, Outlook for Strong Ad Growth

Netflix shares experienced a notable increase following an optimistic upgrade from analyst Jason Helfstein at Oppenheimer, who raised his price target to $450 from $415. This upgrade was driven by expectations of future price hikes in the U.S. and a robust outlook for advertising revenue growth. Helfstein highlighted Netflix's potential to implement price increases in the U.S. in 2024, following similar moves in Canada, and projected a significant rise in ad-supported revenue, estimating it could reach $2.3 billion in 2024 and $4.2 billion in 2025. He also noted that Netflix's ad-supported tier, launched in November 2022, has been performing well, with ad-supported memberships growing by 70% quarter-over-quarter. This positive outlook contributed to Netflix's stock rising by 2.6% to $438.84 in premarket trading.

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[ https://www.msn.com/en-us/money/markets/netflix-shares-rise-on-bullish-analyst-upgrade-citing-potential-for-future-us-price-hikes-outlook-for-strong-ad-growth/ar-AA1B5SpK ]