💰 Netflix set for slowest revenue growth as ad plan struggles to gain traction

TL;DR

Netflix set for slowest revenue growth as ad plan struggles to gain tractionJan 17 (Reuters) - Netflix Inc (NFLX.O) is expected to report its slowest quarterly revenue growth on Thursday as its ad-supported plan struggles to attract customers in the saturating U.S. market, which could pressure the company to pull back on content spending this year.That is likely to draw focus on Netflix's aggressive content spending, which finance chief Spencer Neumann said in July would total about $17 billion annually for the next couple of years.For comparison, rival Walt Disney Co (DIS.N) expects fiscal 2023 content spend in the low $30 billion range, while Paramount Global (PARA.O) projects expenditure of below $10 billion.CONTEXTNetflix had suffered hefty subscriber losses in the first six months of 2022 due to the fallout from the Russia-Ukraine conflict and a weakening economy, which forced the streaming pioneer to turn to advertising in a move it long resisted.FUNDAMENTALS* Earnings per share are estimated at 44 cents when Netflix reports results on Jan. 19WALL STREET SENTIMENT* 21 of 43 analysts rate the stock "buy" or higher, while 19 have a "hold" rating and three rate it "sell" or lower* The analysts' median price target on the stock is $330, up from $278.97 on Nov. 1, when the ad plan was launched* Netflix is currently trading at $324.43Our Standards: The Thomson Reuters Trust Principles."

Like summarized versions? Support us on Patreon!