U.S. Markets closed

Goldman Sachs Says Buy Netflix (NFLX) Stock on Expectations of Strong Q1

Parth Panchal

In a research note released Wednesday morning, a Goldman Sachs analyst said to buy Netflix NFLX stock in response to impressive data on content and download trends.

Netflix is set to report their Q1 financials on Monday, April 17, and Goldman expects to see online video streaming of Netflix’s subscribers to beat expectations.

Analyst Heath Terry emphasized content sales, pricing stability, and the strong growth of international sales. Mr. Terry predicts Netflix’s Q1 report to confirm the scale and profitability of the video streaming platform.

"We expect Netflix to report subscriber additions above its original guidance ... driven by a strong content slate, stable pricing, and maturing international markets. While investor expectations have followed NFLX's share price higher, we expect 1Q results will be further confirmation of the long-term scale and profitability of the platform” wrote Mr. Terry.

As of 2:25 PM EST, Netflix is trading down 0.04% to $144.29 and holds a Zacks Rank #3 (Hold).

Looking for Ideas with Even Greater Upside?

Most of Zacks’ investment ideas are short-term, directly based on our proven 1 to 3-month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Netflix, Inc. (NFLX): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research