More data points support a positive first-quarter report from internet television network Netflix. But Netflix stock declined Monday along with the broader market.
Rosenblatt Securities analyst Barton Crockett on Monday said Netflix is "showing strength via surprise hit 'Adolescence.'"
"Netflix's 'Adolescence' features little known actors and was not widely marketed. Yet, as outlined in a Washington Post article, it is hitting a nerve both artistically and thematically," Crockett said in a client note.
The dramatic miniseries has helped push Netflix's quarter-to-date total viewership up 9% year over year, Crockett said.
"A provocative hit at the end of the quarter like 'Adolescence' is probably helpful for Netflix trends, although the clarity of sub trends will be less as Netflix will no longer report subs," he said.
Starting with its first-quarter report, due April 17, Netflix will no longer report its quarterly subscriber numbers. The subscription streaming video service wants investors to focus on revenue and operating margin instead.
Crockett reiterated his buy rating on Netflix stock with a price target of 1,494.
Netflix Stock Is On Two IBD Lists
On the stock market today, Netflix stock dropped a fraction to close at 932.53.
Elsewhere on Wall Street, Evercore ISI analyst Mark Mahaney said his firm's latest consumer surveys in the U.S. and Japan provided positive indications for Netflix.
In a client note, Mahaney said the survey results "tilt positive" for Netflix.
Netflix has "an extremely strong and growing value proposition (which supports ongoing pricing power), and a very solid track record of innovation," he said. That includes Netflix's lower-cost, advertising-supported service tier to reduce subscriber churn.
Mahaney rates Netflix stock as outperform with a price target of 1,100.
Netflix stock is on two IBD lists: Big Cap 20 and Stock Spotlight.
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