Netflix Stock: Headed to $240?
After getting annihilated in the first half of 2022, shares of streaming-TV giant Netflix (NASDAQ: NFLX) have seen some upward momentum recently. Indeed, since July 1, the stock has risen about 25%. Of course, this gain still leaves the stock far from where it was at the beginning of the year. Shares are down more than 60% year to date.
An analyst from JPMorgan Chase thinks the stock could continue to rise from here. There's increased investor interest in the stock ahead of the company's upcoming launch of its ad business, Doug Anmuth said in a note to investors on Wednesday. How far could the stock rise? The JPMorgan analyst has a $240 12-month price target for the stock, indicating he believes there's still meaningful upside for the streaming service company's shares ahead.
While it's encouraging to hear that Anmuth is betting Netflix stock can add to its already-impressive gains since the middle of this summer, a $240 price target notably only represents 7% upside from where shares are trading at the time of this writing. The reason for Anmuth's conservative outlook for the stock? He believes there's uncertainty surrounding how the company's subscriber trends will add in the second half of 2022. So even if he's optimistic about the potential for Netflix's long-awaited ad-supported tier, headwinds to subscriber growth are keeping many investors on the sidelines.
Source Fool.com
