Here's Why Analysts Expressed Caution Ahead Of Netflix's Q1

Analysts expressed caution ahead of Netflix Inc NFLX Q1 earnings, highlighting EMEA's churn risk, the company's second-largest region, due to potential consumer spending pressure tied to higher energy costs and broader inflationary pressures and loss of subscribers in Russia.
Baird analyst William Power noted that each 10 bps increase in churn could negatively impact EMEA net additions by 200,000.
Power maintained his Neutral rating and $420 price target (14% upside) on Netflix shares.
Stifel analyst Scott Devitt lowered the price target on Netflix to $460 from $500 (24.9% upside) and kept a Buy.
Devitt left his Q1 revenue estimates "largely unchanged" given that engagement data is tracking in line with his estimates and guidance.
Devitt hardened his 2022 estimates and beyond due to a more conservative approach to the subscriber and ARPPU growth on worsening macro conditions and continued uncertainty.
Price Action: NFLX shares traded lower by 3.17% at $356.66 on the last check Thursday.