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Netflix Trades Higher Post-Split as JPMorgan Lowers Target and Highlights Ad-Tier Scale

Investor attention has shifted to ad‑tier scale despite a Brazil tax charge that skewed last quarter.

Overview

  • Netflix completed a 10-for-1 stock split and is trading on a split-adjusted basis near $110 to $114, with a market value cited around $471 billion.
  • JPMorgan’s Doug Anmuth kept a Neutral rating but cut his price target to $124 from $127.50, noting recent underperformance versus the S&P 500.
  • Shares rebounded Tuesday even as broader tech fell, with investors leaning into long-term fundamentals following the split-adjusted debut.
  • The ad-supported business now counts about 190 million monthly active ad viewers, with company expectations for ad revenue to more than double in 2025 and a projection of roughly $4.3 billion in 2026.
  • Q3 revenue rose 17% to $11.51 billion and net income reached $2.55 billion, but EPS missed after an approximately $619 million Brazil tax charge that CFO Spence Neumann said is not expected to materially affect future results.