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Investing.com — Shares of Netflix Inc (NASDAQ:NFLX) rose more than 2.8% at the open Friday after comments from JPMorgan analyst Doug Anmuth.
Anmuth reiterated an overweight rating and $605 price target on Netflix based on his checks on first-quarter data.
The analyst said that data from Apptopia indicates that so far in the first quarter, average global download growth has accelerated to +8% year-over-year from +4% year-over-year in the fourth quarter. Apptopia is a platform that provides mobile app and connected device analytics.
“India price cuts could drive demand at lower price points, supporting APAC sub growth,” Anmuth said in his note to clients.
“If NFLX were to continue the quarter at its recent pace, we believe Net Adds could be 5M+, compared to the 2.5M guide,” he added.
The firm believes that early first quarter “content has been stronger than expected,” but they cautioned that the potential subscription impact from the U.S. and Canada price increase may lie ahead and first quarter seasonality “likely becomes less favorable through the quarter.”
