Apr. 18 at 12:48 PM
$NFLX from Morgan and Stanley with PT of
$115 {Im thinking by Q3}
Worth It: The company’s standard practice is to provide guidance that takes into account planned price increases through the year (rare to have surprise hikes), so while the March hike was sooner than most expected (recent years Jan/Oct announced) it was in-line with the historical ~12-24 month cadence. We remind investors that price hikes typically take 2-3 months to ripple through the PnL and the lapping of the Jan ’25 hikes in 2Q25 created a tough comparison as the March ’26 hikes will likely help 3Q26 more than 2Q26, which also sets up for an acceleration in 2H26. As we pointed out in our assumption of coverage, NFLX subs are paying the least per hour of viewing compared to other SVOD offerings. The Ads plan at
$8.99/mo in the US offers a highly accessible entry point and bundling with partners like MELI (covered by Andrew Ruben) in Mexico and Brazil drives deeper penetration.
