Netflix Stock Tumbles FridayWhy Analysts Say Theyre Still Bullish on the Streaming Giant [Video]

Netflix (NFLX) shares tumbled more than 8% on Friday after the streaming giant reported first-quarter earnings beating analyst estimates, but gave weaker-than-expected revenue guidance and said it would no longer report subscriber numbers starting in 2025.

However, analysts remained bullish, citing Netflix’s dominance in the streaming space and strong fundamentals with some even raising their price target and saying they “welcome” the coming subscriber reporting changes.

Bank of America analysts raised their price target for the stock to $700 from $650 citing updated forecast figures and several growth drivers.

Netflix updated its revenue growth expectations for the full 2024 year, saying that the company “expect[s] healthy revenue growth of 13% to 15%.” In the final quarter of 2023, the company had simply said it expected “healthy double digit revenue growth.” The company also updated its operating margin projections for the full 2024 year to 25% from 24%.

Bank of America said its higher price …