Netflix (NASDAQ:NFLX) gained early Friday following two positive analyst reports. Wells Fargo upgraded the streaming service’s stock to overweight from equal weight, saying content growth would lessen customer churn. Cowen named the stock a “best idea” for 2023, pointing to additional monetization avenues including the new ad-supported tier.
Also this week, came news that Netflix co-CEO Ted Sarandos was sounding an upbeat note for the streaming pioneer as the company signaled a tough 2022 will turn into re-accelerated growth in the coming year.
"We're, like most companies, happy to get '22 behind us," Sarandos said in kicking off a UBS conference talk. But in a year where the company's stock took a beating - it's down 49% year-to-date, though that also reflects a second-half rebound, up 55% over the past six months - he said there was a lot to be proud of in terms of performance.
"This year, in very tough conditions, we've launched five of our most watched shows in the history of Netflix ... and three of our most watched films," he said.
That's come in a transformative year for streaming, in which Netflix saw its first-ever quarterly subscriber decline, and a number of market entrants snatched up millions of subscribers to their own services.
NFLX jumped $11.06, or 3.6%, to $321.32
