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Netflix stock jumps after upgrades from Cowen, Wells Fargo

Shares of Netflix popped after analyst upgrades from both Cowen and Wells Fargo.

Video transcript

[AUDIO LOGO]

DAVE BRIGGS: Another stock up is Netflix, and it's up on some analyst notes. What are we hearing?

ALLIE CANAL: Yeah, a lot of Wall Street optimism right now. We had a big upgrade from Wells Fargo. Cowen also upping its price target, citing Netflix as its top large-cap pick for 2023. On the Wells Fargo side, analyst Steve Cahall, he cited profitability should improve with the addition of the ad-supported tier. He upgraded shares from equal weight to overweight, also upped his price target to $400 a share from 300.

In addition to that, we have that crackdown on password sharing. That should help aid revenue and be a catalyst for growth moving forward. And then on the content side-- and we have seen content improve through the back half of the year-- we had "Wednesday," "Dahmer," the Jeffrey Dahmer story, doing really well, "The Watcher."

And then to end this year, we have "Glass Onion," the "Knives Out" sequel, coming to the platform on December 23. And I think into 2023, that's going to help subscribers in the end. So this has really been a comeback story. It's kind of crazy to see the share reaction. Over the past six months, it's up 65% even though it's down year-to-date.

SEANA SMITH: I know. It's still up 46% year-to-date to put it in context.

DAVE BRIGGS: In that period where everyone was burying them and talking about the sub loss and the first back-to-back quarter sub loss, it feels like they've kind of survived this and grinded through it, doesn't it? The comeback story is on.

ALLIE CANAL: It seems that way. It seems Wall Street's happy about this. That's aiding investor sentiment. So I think heading into 2023, they're in a really good position.

SEANA SMITH: We'll see whether or not Netflix lives up to Wall Street's expectations here in the New Year. Allie Canal, thanks so much for breaking that down for us.