WebProNews
Evercore ISI Bullish on Netflix: Raises Price Target to $640 Amidst Mobile-Only Success
In a move signaling continued confidence in Netflix’s growth trajectory, Evercore ISI has revised its price target for the streaming giant upward, from $600 to $640 per share. The adjustment comes as Netflix continues to chart innovative paths to expand its subscriber base and solidify its position in the highly competitive streaming landscape.
During an interview on CNBC, Mark Mahaney, Head of Internet Research at Evercore ISI, shared insights into the rationale behind the price target adjustment. Mahaney emphasized the pivotal role of Netflix’s mobile-only subscription plan in driving subscriber growth and enhancing the company’s revenue potential.
Mahaney noted that the mobile-only plan, introduced over the past couple of years, has been instrumental in attracting many new subscribers. With its more affordable price point, the mobile-only offering has resonated particularly well with consumers seeking flexible and accessible access to Netflix’s vast library of content.
The success of the mobile-only strategy goes beyond merely adding new subscribers; it also serves as a catalyst for expanding Netflix’s customer base across diverse demographics. Notably, Mahaney pointed out that approximately 40% of new sign-ups opt for the mobile-centric subscription, highlighting the effectiveness of the lower price tier in broadening Netflix’s market reach.
Furthermore, Mahaney underscored how the mobile-only plan provides Netflix a competitive edge, allowing the company to maintain pricing power even as it explores higher-end subscription options. By offering a more affordable entry point, Netflix can effectively capture market share and solidify its position as a leader in the streaming space.
Despite increasing competition and valuation concerns, Mahaney remains bullish on Netflix’s long-term prospects. He views Netflix as a standout performer amidst a backdrop of industry upheaval, with the company demonstrating resilience and adaptability in navigating evolving market dynamics.
In conclusion, Evercore ISI’s decision to raise Netflix’s price target reflects a positive outlook on the company’s future growth potential. With a focus on innovation and customer-centric strategies such as the mobile-only subscription plan, Netflix continues to differentiate itself in a crowded streaming market, positioning itself for sustained success in the years ahead.
Evercore ISI Bullish on Netflix: Raises Price Target to $640 Amidst Mobile-Only Success
Staff
from WebProNews https://ift.tt/rmfsFWt
No comments:
Post a Comment