Netflix was rallying Tuesday afternoon, up 3.6% at $361.58 a share, as traders positioned themselves for the company’s first-quarter earnings report due out after the closing bell. On Monday, shares settled at $348.87 apiece, their weakest since February 7.
“Our thesis – that NFLX reaches massive scale and generates strong recurring profits – remains unchanged,” Morgan Stanley analyst Benjamin Swineburne, who has an “overweight” rating and $450 price target, said in an earnings preview.
“Concerns about rising competition define the market too narrowly and underestimate the scale needed to win. Strong credit market sponsorship supports the ability to efficiently finance growth.”
As for the results, Wall Street analysts surveyed by Bloomberg are expecting Netflix to earn an adjusted $0.76 a share on revenue of $4.51 billion. Additionally, they anticipate the streaming giant to announce 8.94 million total paid streaming net subscriber additions for the quarter (1.61 million dometic and 7.33 million international).
Ahead of the report, analysts were mostly bullish on Netflix, with an average price target of $390 a share, according to Bloomberg. Of the 44 analysts covering the stock, 30 had a “buy” rating, 11 said “hold,” and just four suggested “sell.”
Netflix was up 34% this year.