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Netflix Stock Rises Monday as Oppenheimer Upgrades in Anticipation of an Increase in Customers From the Advertising Tier

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Netflix stock was trading at 242.81 as of 09:42 AM EDT. 

Netflix stock (NASDAQ:NFLX) increased on Monday following an upgrade by research firm Oppenheimer, which noted that the company’s upcoming introduction of an ad-supported tier could spur membership growth and increase average revenue per user.

In addition to the rise in members and average income per user, analyst Jason Helfstein upped his recommendation from performing to outperform and noted that the new tier is anticipated to slow churn, the industry term for how frequently users leave a service.

Helfstein stated in a note to clients that “Netflix is in a unique position to enormous aggregate audiences and control the timing of series debuts for top-tier marketers, commanding a high [cost per thousand views].”

Netflix stock price, financial expectations

In premarket trading, Netflix (NFLX) shares increased 1.5% to $243.70. Additionally, Helfstein stated that he anticipates Netflix (NFLX) to generate $4.6 billion in advertising income in 2025, exceeding Wall Street expectations, with total revenue of $42.4 billion and 282 million users. Despite Netflix’s (NFLX) announcement that the advertising tier won’t be accessible until the beginning of 2023, some have speculated that it might come as early as November 1.

After analyzing the company’s advertising possibilities and doing some polls, the investment firm Evercore last week upgraded Netflix ((NASDAQ:NFLX) to outperform. Almost all analysts are wary of Netflix (NFLX). Wall Street analysts rank it a HOLD, and the authors of Seeking Alpha give it a HOLD rating. In contrast, NFLX is rated as a HOLD by Seeking Alpha’s quantitative approach, which consistently outperforms the market.

As the Netflix merger failed, French equities declined.

The two largest private broadcasters in France abandoned their plans to merge on Friday, blaming French antitrust regulations that made the agreement impossible, as reported by Reuters. 

M6 and TF1 are battling to remain competitive, along with other local broadcasters in Europe, as global video platforms grow in power over the market. A partnership was seen as a solution to these problems.

According to the original merger plan, German media conglomerate Bertelsmann (BTGGg.F), the parent company of M6, would have been the second-largest stakeholder with 16% of the combined company, with 30% ownership going to French conglomerate Bouygues.

The companies have recently come up against fierce opposition from a number of sources, including media conglomerate Vivendi (VIV.PA), the owner of France’s largest pay-TV company, Canal Plus, and Xavier Niel, the creator of telecom maverick Iliad. In May 2021, the controlling shareholders of TF1 and M6 declared their intention to merge.

Netflix Stock Rises On Ad-Supported Tier Predictions.

Featured Image – Megapixl ©  Aviahuismanphotography 

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