BUZZ-Street View: Netflix dominance to get AI, ad boost

Reuters
18 Jul
BUZZ-Street View: Netflix dominance to get AI, ad boost

** Netflix's NFLX.O Q2 earnings beat Wall Street expectations, primarily driven by season finale of "Squid Game"

** Streaming giant raises 2025 revenue guidance to $44.8 bln-$45.2 bln, up from previous guidance of up to $44.5 bln

** NFLX falls 1.2% to $1,258.80 premarket

RED LIGHT, GREEN LIGHT, MONETISE

** JP Morgan ("neutral"; PT: $1,300) sees continued momentum into H2 FY25 with blockbuster content slate, accelerating ad monetisation

** Pivotal Research ("buy"; PT: $1,600) says co's financial strength, global scale enable it to dominate streaming through premium content investments, while weaker rivals forced to license content to Netflix, further reinforcing its leadership

** Believes AI has potential to significantly improve co's video content, while reducing cost of such programming

** Jefferies ("buy"; PT: $1,500) notes co's 1% engagement growth was weighed down by a password-sharing crackdown, but upcoming content, ad tier expansion and push into short-form and live content could boost viewing, narrow its gap with YouTube

** Evercore ISI ("outperform"; PT: $1,375) believes co's ad-supported offering, live sports content endeavors constitute two major Growth Curve Initiatives, "kind of like password-sharing"

** Piper Sandler ("overweight"; PT: $1,500) views co as defensible, well-positioned leader in streaming with multiple growth levers

(Reporting by Rashika Singh in Bengaluru)

((rashika.singh@thomsonreuters.com))

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