Shares of Netflix (NASDAQ: NFLX) fell more than 7% in late Thursday morning trading. This can be attributed to a report from Digiday that claims Netflix is refunding advertisers for not achieving viewership guarantees.
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However, the news doesn’t appear to be as bad as it sounds. Not all advertisers have requested refunds, and the main reason why some have asked for their money back was simply to reallocate their funds away from holiday ads they had booked with Netflix.
It’s also worth noting that this is part of Netflix’s approach to advertisements, where companies only pay for the viewers they reach. As a result, money is only being refunded for ads that have yet to run.
Overall, Wall Street analysts have a consensus price target of $299.24 on NFLX stock, implying 1.5% upside potential, as indicated by the graphic above.
