Netflix guidance may imply negative growth in some regions, says Barclays

Barclays keeps an Equal Weight rating on Netflix with a $550 price target following last night’s results. The company’s guidance for Q3 growth may imply negative growth in some regions, which is likely not anticipated at present, the analyst tells investors in a research note. The firm believes Netflix second half of 2024 is likely to see mean reversal on subscriber grow. Netflix continues to add a record number of subscribers but the beat on this metric was for the most part expected heading into the quarter, contends Barclays. Next quarter onwards, the company will start lapping the impact of paid sharing which resulted in significant growth acceleration in the second half of last year, the firm adds.