Overview
- Netflix said the split is designed to make shares more accessible for employees in its stock option program, with trading to reflect the new share count on Nov. 17.
- Following Q3 results, BMO Capital reaffirmed an Outperform rating with a $1,425 target and projected the ad business will more than double revenue in 2025.
- Third-quarter revenue rose 14.84% year over year and broadly met forecasts, while operating income faced pressure.
- Analyst reactions diverged, with Erste Group cutting the stock to Hold on margin and valuation concerns and Bernstein maintaining a Buy with a $1,390 target.
- Media reports have suggested Netflix is exploring a potential bid for Warner Bros. Discovery, a notion the company has not confirmed.