Overview
- Shares have dropped sharply in recent sessions after Netflix guided Q2 revenue to $12.57 billion and EPS to $0.78, both below forecasts, even though Q1 topped expectations.
- First‑quarter results showed $12.25 billion in revenue, $1.23 in EPS, and strong free cash flow that was boosted by a one‑time $2.8 billion termination fee from the abandoned Warner Bros. Discovery pursuit.
- According to a JPMorgan note, Netflix is preparing a vertical, TikTok‑style video feed on mobile later this month to capture short viewing sessions and improve discovery, which could also create future ad opportunities.
- Wall Street remains broadly positive with about 29 Buys and 8 Holds and an average target near $115, and firms including JPMorgan and Wolfe Research recommend buying the post‑earnings dip.
- Reed Hastings will exit the board in June, and investors are weighing a mature‑growth playbook built on ads, price increases, live programming, and new mobile features as expansion slows in markets where viewing time is already near its limits.