Netflix Stock Is Sliding: What's Going On?

Netflix Inc NFLX shares are trading lower Wednesday. The streaming company reported mixed financial results after the bell on Tuesday and several analysts are out with updates following the print. 

What Happened: Netflix said first-quarter revenue increased 3.7% year-over-year to $8.16 billion, which missed consensus estimates of $8.18 billion, according to Benzinga Pro.

The streaming company reported quarterly earnings of $2.88 per share, which beat estimates of $2.86 per share. 

Global subscribers climbed 4.9% year-over-year to 232.5 million and Netflix said its ad-tier is performing better than it initially expected it to.

"Our long-term financial objectives are unchanged - sustain double digit revenue growth, expand operating margin and deliver growing positive free cash flow," the company said in a letter to shareholders.

"We're on track to meet our full year 2023 financial objectives."

Netflix expects second-quarter revenue of $8.242 billion versus estimates of $8.48 billion. The company anticipates second-quarter earnings of $2.84 per share versus estimates of $3.05 per share. 

Related Link: Netflix Q1 Earnings Highlights: Revenue Miss, EPS Beat, Ad-Support Above Expectations, Guidance And More

Netflix also delayed its password sharing crackdown, but the company expects to ramp up efforts toward stopping users from sharing accounts before July. 

Analyst Changes: 

• UBS analyst John Hodulik upgraded Netflix from Neutral to Buy and raised the price target from $350 to $390.
• Deutsche Bank analyst Bryan Kraft maintained Netflix with a Buy and raised the price target from $400 to $410.
• JPMorgan analyst Doug Anmuth maintained Netflix with an Overweight and lowered the price target from $390 to $380.
• Piper Sandler analyst Thomas Champion maintained Netflix with a Neutral and raised the price target from $325 to $350.
• Rosenblatt analyst Barton Crockett maintained Netflix with a Neutral and raised the price target from $343 to $357.

NFLX Price Action: Netflix shares initially traded sharply lower on the heels of the report, but quickly recovered and even briefly turned positive. The stock was down 2.44% at $325.57 at time of publication, according to Benzinga Pro.

Photo: yousafbhutta from Pixabay.