Wall Street analysts revised their forecasts for Netflix and slashed price targets for the streaming company’s stock as they await further clarity on the company’s growth strategy.
The changes for Netflix, which will report third-quarter earnings after the bell on Wednesday, come as analysts surveyed by Zacks Investment Research are expecting the company to report earnings of $3.46 per share on revenue of $8.53 billion for the quarter.
The streamer, which is already profitable, has shifted its focus to an ad-supported tier and a crackdown on password sharing for an estimated 100 million households globally as it looks to accelerate revenue growth, expand its margins and continue to grow positive free cash flow.