- Oppenheimer analyst Jason Helfstein had an Outperform rating on Netflix, Inc (NASDAQ:NFLX) with a price target of $415.
- Wednesday afternoon, Netflix management hosted their Upfront presentation and Q&A with analysts.
- Given the lack of prior disclosure, the streaming giant has been a top pick, and the analyst is incrementally more positive on the ad tier progress.
- Most notably: 1) ad tier has ~5 million MAUs, significantly more than the 1 million reported by third parties; 2) represents 25% of new subscribers in respective geographies; 3) viewed 80% on TV; and 4) average age of 34, all of which helps support the premium ad prices.
- In addition, Netflix viewers are 4 times more likely to engage with an ad on Netflix vs. other streaming platforms and 4.5 times vs. linear TV.
- Ad product development includes frequency caps and the ability to sponsor Netflix series launches and purchase guaranteed inventory from NFLX’s Top 10 shows.
- Netflix is also adding more third-party verification tools, including Nielsen ONE, which will give advertisers de-duplicated audience measurement metrics and a partnership with EDO, Inc., a TV outcomes measurement platform.
- Interestingly, Netflix believes it can bypass the demand-side platforms (DSPs) for campaign optimization.
- While still early, executives believe advertising revenue will grow to +$3 billion over time, and they also confirmed press reports that $300 million in opex reduction is underway.
- Netflix expects to launch Paid Sharing in additional markets before quarter-end, with increased noise around higher churn from third-party data providers.
- Price Action: NFLX shares traded higher by 9.49% at $372.22 on the last check Thursday.
- Photo by Tumisu via Pixabay
Nio Plans to Open its First Overseas Plant in September to Manufacture Power Products for European Market
-Reuters
https://www.reuters.com/business/autos-transportation/chinas-nio-make-power-products-europe-its-first-overseas-plant-2022-08-01/
