FINWIRES · TerminalLIVE
FINWIRES

Netflix's 'Solid' H2 Pipeline to Support User Acquisition, Engagement Going Forward, UBS Says

By

Netflix's (NFLX) "solid" H2 pipeline as well as a normalization in viewership post recent events will support user acquisition, engagement going forward, UBS said in a Thursday note.

UBS said that a channels-like app store, live TV channels and a FAST service are all on the table for the company to enhance value for subscribers and drive monetization by leverage the approximate 330 million subscriber base.

Netflix still expects ad revenue of $3 billion in 2026 and has suggested that the gap between ad tier average revenue per member, or ARM, and standard ARM is narrowing, UBS said, adding that it expects about 5% ARM growth and about 22 million net paid subscribers adds in 2026, compared with 4% growth and 23.5 million adds in 2025.

Additionally, UBS lowered its estimates on Netflix by less than 1% and said it continues to view the company as "industry leader in streaming video with a competitive moat, monetization runway and sustainable double digit revenue and operating income growth."

UBS adjusted its price target to $115 from $130 and maintained its buy rating.

Price: $67.79, Change: $-6.56, Percent Change: -8.82%

Related Articles

Wire

STAAR Surgical Reports Higher Q2 Preliminary Net Sales

STAAR Surgical (STAA) reported Q2 preliminary net sales late Thursday of more than $90 million, up from $44.3 million a year earlier.Analysts polled by FactSet are looking for $90.2 million.Net sales in the Middle East, certain parts of the EMEA and Asia-Pacific regions, were affected by geopolitical and macro headwinds, the company said, adding that, if the conditions persist or worsen, its sales growth could continue to be negatively affected.Shares were down about 13% in after-hours trading.

$STAA
Wire

Alcoa Fiscal Q2 Adjusted Earnings, Revenue Rise

Alcoa (AA) reported fiscal Q2 non-GAAP net income late Thursday of $2.12 per diluted share, up from $0.39 a year earlier.Analysts polled by FactSet expected $2.25.Revenue for the quarter ended June 30 was $3.97 billion, up from $3.02 billion a year earlier.Analysts expected $3.99 billion.

$AA
Wire

Netflix Fiscal Q2 Earnings, Revenue Rise; Q3 Guidance Set

Netflix (NFLX) reported fiscal Q2 earnings late Thursday of $0.80 per diluted share, up from $0.72 a year earlier.Analysts polled by FactSet expected $0.79.Revenue for the three months ended June 30 was $12.56 billion, up from $11.08 billion a year earlier.Analysts expected $12.58 billion.For Q3, the company expects EPS of $0.82 on revenue of $12.86 billion. Analysts expect EPS of $0.84 on revenue of $13 billion.For the full-year 2026, the company now expects revenue of $51 billion to $51.4 billion. It earlier expected $50.7 billion to $51.7 billion. Analysts expect $51.38 billion.

$NFLX