Netflix shares fall; Analysts warn of a potential subscriber growth forecast miss

Netflix shares open in the red as analysts warn its subscriber growth numbers could miss Wall Street estimates.

Netflix shares fall; Analysts warn of a potential subscriber growth forecast miss

Netflix shares opened lower Friday as analysts warned the TV streaming giant could miss on its subscriber growth numbers when it posts its latest earnings update next week. The stock has surged in recent sessions as industry survey data suggests a positive outlook for Netflix subscriber numbers.

Netflix shares opened 1.61% lower at $406.85. The stock also closed lower Thursday, despite the broader upbeat tone.

Deutsche Bank warns on Netflix subscriber numbers

Deutsche Bank analysts warned its clients that FANG darling Netflix, could be due a breather after surging 115%-to-date. That’s because the German Bank thinks Netflix subscriber growth numbers could miss Wall Street expectations.

“We see limited upside and even some downside to 2Q guidance/consensus,” Deutsche Bank analyst Bryan Kraft said in a note. “We don't see 2Q earnings as a positive catalyst for the stock; in fact, we see some near-term downside risk.”

That view comes soon after a positive outlook for Netflix subscriber numbers, based on an industry survey. Baird analysts said they’re anticipating Netflix numbers to be in line with expectations when the company reports its Q2 earnings update, Monday.

Deutsche Bank, however, also reiterated its ‘Buy’ rating on the Netflix stock and maintained his $360 price target.

Netflix achieves 112 Emmy nominations

Also ahead of that earnings update, Netflix is the recipient of 112 Emmy nominations, beating HBO’s 108.

Netflix originals that have earned those award nominations include:

  • The Crown.
  • Stranger Things.
  • Queer Eye.
  • GLOW.
  • Grace and Frankie.
  • Ozark.

That news will likely support the business’s plans to continue investing millions in its original shows across the globe.

Indeed, just Thursday Netflix announced a new deal with writer and producer Alex Pina to produce new series across the streaming giant’s network.

“We have full confidence that Alex will continue to break boundaries with his unique vision and storytelling capturing audiences worldwide,” said VP of Netflix International Originals, Erik Barmack.

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