Needham keeps a Buy rating and a $1,500 price target on Netflix (NFLX) after its Q3 miss. The stock fell as the management no longer discloses subscriber adds or average revenue per user, which exacerbates volatility/beta when they miss any metric they do disclose, and the management also appeared dismissive of YouTube (GOOGL) as an “inferior competitor”, the analyst tells investors in a research note. However the firm is positive on the company’s diversification into podcasts and its implementation of interactive features as well as its launch of several new physical events/spaces, and its recent consumer products deal for one of its most successful pieces of IP with both Mattel (MAT) and Hasbro (HAS), Needham added.
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