Netflix stock (NASDAQ: NFLX) crashed 9.72% on Friday after the company posted its earnings and missed Q2 guidance estimates. The 10% plunge wiped away a month’s gains, leaving traders back at square one. Even though the streaming giant’s first-quarter statistics put it on the pedestal, the Q2 estimates failed to meet Wall Street expectations.
The online streaming company’s full-year revenue of $51.2 billion was lower than the Wall Street analysts’ forecasts of $51.38 billion. In addition, its 31.5% operating margin target was lower than the 32% forecast. All of these turned disastrous for Netflix stock, leading to a slump of more than 10 points. NFLX now remains in muddy waters as investors’ confidence is low, with fears gripping the equity.
However, leading investment bank Morgan Stanley remains incredibly bullish on Netflix stock despite the disappointing Q2 guidance estimates. The global bank also reiterated its Overweight rating on Netflix stock, providing a new price target for the equity. While the majority of analysts are now bearish on NFLX, Morgan Stanley is exceptionally bullish.
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Morgan Stanley Provides Bullish Price Target For Netflix Stock
Netflix stock plummeted to the $97 range on Friday and is down 22% in the last six months. Morgan Stanley analysts wrote in a note to clients that the strong pullback is a buying opportunity that can provide a better upside. NFLX trading below $100 is a lucrative affair, allowing traders a window of opportunity.
According to the new price prediction from Morgan Stanley. Netflix stock could reach a high of $115 next. That’s an uptick and return on investment (ROI) of approximately 18% from its current price of $97. The investment bank wrote that NFLX troubles are lukewarm and apparently could be a near-term inconvenience. The company has a compelling story, and an investment of below $100 could make traders reap the rewards.