JPMorgan Remains Neutral on Netflix (NFLX) Despite Better Operational Momentum

Netflix Inc. (NASDAQ:NFLX) is one of the most profitable tech stocks to invest in now. On August 17, JPMorgan’s Doug Anmuth reaffirmed a Neutral rating on Netflix Inc. (NASDAQ:NFLX) with a $1,300 price target. He pointed out that while management lifted its 2025 revenue guidance, some headwinds remain. Viewership remains affected by paid-sharing initiatives and earlier delays in new content releases. That said, management expects engagement to improve meaningfully in the second half of the year.

In July, Netflix Inc. (NASDAQ:NFLX) had increased its full-year revenue forecast to $44.8–$45.2 billion, about $1 billion higher than its earlier midpoint and representing growth of 15–16%. The company continues to prioritize international expansion and original programming.

In that regard, Bloomberg reported on August 20 that Netflix Inc. (NASDAQ:NFLX) has invested more than $200 million in Thailand over the past four years, turning the country into a regional hub for production. That investment appears well-timed, with Thai content drawing approximately 750 million viewing hours in 2024, and nine new titles are scheduled for release this year.

Separately, Netflix Inc. (NASDAQ:NFLX) is in advanced talks with Major League Baseball for exclusive rights to the Home Run Derby through 2028, in a deal estimated at over $35 million per year. If agreed, it would expand Netflix’s diversification strategy into live sports, broadening its offering beyond scripted shows and films.

Netflix Inc. (NASDAQ:NFLX) is a global streaming entertainment service that offers a diverse array of movies, TV shows, games, and more, with unlimited viewing on internet-connected devices.

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Disclosure: None. This article is originally published at Insider Monkey.