Streaming giant Netflix’s (NFLX) offices in France and Netherlands were raided by investigators as part of a preliminary investigation into any potential tax fraud laundering practices. In France, the probe is being conducted by the Parquet National Financier (PNF), a special financial crime unit that undertakes high-profile, white-collar investigations.
More Details on the Tax Probe
The French and Dutch tax investigators have been working in coordination to investigate tax fraud laundering and off-the-books work. The investigation initially opened in November 2022. The Dutch prosecutors for financial crime raided the company’s European headquarters in Amsterdam at the same time when the PNF conducted the raid in Paris.
In response, Netflix spokesperson stated that the company was fully cooperating with the authorities in France. Netflix is one of the prime streaming service providers in the nation and assured that it has been complying with all tax laws and regulations in all countries in which it operates. The preliminary investigation does not necessarily mean that the company will go into trial. It is common for European regulators and tax authorities to probe the operations of overseas tech companies in the eurozone.
A French newspaper reported that Netflix paid less than 1 million euros ($1.6 million) in corporate taxes between 2019 and 2020. The company settled a similar tax dispute in Italy in 2022, by paying 55.8 million euros in fine.
Netflix’s Website Traffic Hints at Growing Visits
According to data compiled by TipRanks’ Website Traffic tool, the total estimated visits to all of Netflix’s apps and websites have grown by 76.14% in the nine months ending September 2024 compared to the same period last year. This increase reflects Netflix’s growing popularity.
Is Netflix a Good Stock to Buy?
Analysts remain divided on Netflix stock. On TipRanks, NFLX stock has a Moderate Buy consensus rating based on 25 Buys, 10 Holds, and two Sell ratings. The average Netflix price target of $786.34 implies 2.9% upside potential from current levels. Meanwhile, NFLX shares have gained 56.9%.
