Latest news with #JustinPatterson
Yahoo
22-07-2025
- Business
- Yahoo
KeyBanc Lifts Meta (META) to $800, Sees AI Fueling Future Upside
Meta Platforms, Inc. (NASDAQ:) is one of the AI Stocks on Wall Street's Radar. On July 17, KeyBanc analyst Justin Patterson raised the firm's price target on the stock to $800 from $655 and kept an 'Overweight' rating on the shares. Owing to strong revenue momentum, Keybanc has raised its 2025 and 2026 revenue and EPS. However, it is also aware that there may be increased spending on artificial intelligence in terms of both capital expenses and operating costs. The firm doesn't think this is going to be a problem as long as Meta can explain how its AI investments are paying off. 'We expect 2Q revenue comes in at $45.3B, and expect 3Q revenue guidance for $45B-$47.5B (we are modeling $46.5B). While we have raised our 2025E and 2026E revenue and EPS to reflect revenue momentum, we are mindful that there are upward biases to capex and opex from AI investments and are thus slightly below consensus." While we acknowledge the potential of META as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
19-07-2025
- Business
- Yahoo
KeyBanc Raises Alphabet (GOOGL) Price Target to $215, Reaffirms ‘Overweight'
Alphabet Inc. (NASDAQ:) is one of the AI Stocks on Wall Street's Radar. On July 17, KeyBanc analyst Justin Patterson raised the price target on the stock to $215.00 (from $195.00) while maintaining an Overweight rating. According to the firm, Search, YouTube, and Cloud are going to lead to a solid Q2 for Alphabet, with revenue of $94.6 billion. The firm also anticipates positive commentary on AI Mode, Waymo, and expense efficiencies. It also expects to see the company highlighting the value of its platform approach to artificial intelligence. Pixabay/Public Domain Keybanc increased its earnings per share estimates for the stock to $9.88 for 2025 and $10.56 for 2026. This represents increases of 1% and 2% respectively. It also introduced a 2027 EPS estimate of $12.25, all above Street consensus. Alphabet Inc. (NASDAQ:GOOGL) is an American multinational technology conglomerate holding company wholly owning the internet giant Google, amongst other businesses. While we acknowledge the potential of GOOGL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None.
Business Insider
12-07-2025
- Business
- Business Insider
Top Analysts Raise the Bar on Netflix Stock (NFLX) Ahead of Q2 Earnings
Netflix (NFLX) is back in the spotlight as several top analysts lift their price targets ahead of the company's highly anticipated Q2 earnings report, scheduled for July 17. Growing optimism around subscriber growth, ad-tier performance, and margin expansion is making Wall Street increasingly bullish on the streaming giant's outlook. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Overall, analysts expect Netflix to report an EPS (earnings per share) of $7.07 for Q2, up from $4.88 in the same quarter last year. Meanwhile, analysts project Q2 revenues at $11.4 billion, according to the TipRanks Analyst Forecasts Page. Let's look at the recent ratings on NFLX stock. KeyBanc's five-star-rated analyst Justin Patterson raised his price target on NFLX stock from $1,070 to $1,390 while keeping his Buy rating. Patterson remains upbeat on Netflix, citing strong revenue growth potential over the next few years. He expects low double-digit revenue growth driven by rising ad sales, price hikes, and new live content. While he acknowledges some near-term volatility, especially as hit series like Wednesday and Stranger Things wrap up, he believes Netflix's ability to deliver surprise content hits and expand into live programming will keep users engaged and support long-term growth. Overall, KeyBanc estimates Netflix could earn nearly $40 in EPS by 2027, backing its new $1,390 price target based on a 35x multiple of those projected earnings. Needham Lifts Netflix Target on Solid Productivity Gains Needham analyst Laura Martin raised Netflix's price target to $1,500 from $1,126, highlighting the company's strong employee productivity. Netflix leads nine large-cap firms (tracked by Needham) in revenue per employee with nearly double the group average, underscoring efficient workforce performance. Needham sees this as a key driver of long-term financial returns. Additionally, the firm connected Netflix's employee quality and culture to its strong financial performance, saying metrics like returns per employee help measure whether a company hires top-tier, value-generating talent. Is Netflix a Good Long-Term Investment? Turning to Wall Street, NFLX stock carries a Moderate Buy consensus rating. Among the 38 analysts covering the stock, 28 have issued Buy recommendations, and 10 rate it as Hold. Moreover, the average Netflix stock price target of $1,297.38 implies a 3.74% upside potential from current levels. Year-to-date, NFLX stock has gained 40%.
Wall Street Journal
15-04-2025
- Business
- Wall Street Journal
Netflix and Spotify Are Resilient, but Not Recession-Proof
Winning the streaming wars is one thing. Beating back a global recession is quite another. Shares of Netflix NFLX 1.41%increase; green up pointing triangle and Spotify Technology SPOT 1.01%increase; green up pointing triangle have fared better than most in the tech and media space during the past week's tariff-induced roller coaster. Such resilience makes some sense, as subscription-based streaming services aren't directly hit by higher duties on goods imported from other countries. Meanwhile, the wide reach of Netflix and Spotify, which together have more than half a billion people paying monthly fees, give the two a rather strong position with both content creators and their audiences. That advantage could endure and even grow stronger in the event of a recession that would hurt their weaker competitors. Justin Patterson of KeyBanc Capital Markets described Netflix and Spotify as 'defensive plays due to recurring revenue, product cycles, and industry consolidation' in an April 9 report. Still, resilience isn't immunity. The risk of a recession remains real, even after President Trump announced a 90-day pause on many of the new tariffs to give targeted countries time to make new deals with the U.S. government. And while Netflix and Spotify may be among the last options belt-tightening consumers would choose to cut, both offer multiple pricing tiers that would allow subscribers to trade down to save a few bucks. That could hurt. Netflix, for instance, averages about $18 a month per ad-free subscriber in North America, according to consensus estimates from Visible Alpha. The company's ad-supported plan costs less than half that much. Spotify's free, ad-supported tier has a much larger user base than its paid version, but paid subscribers make up 88% of the company's total revenue, making trade-downs an expensive scenario for the music streamer. Doug Anmuth of JPMorgan rates both Netflix and Spotify as buys, but noted in an April 8 report that 'there is no macro immunity in the Internet space, only degrees of resilience.' Most analysts have buy ratings on the two stocks. But, at 35 times and 45 times projected earnings respectively, Netflix and Spotify also command premium valuations that reflect hopes for growth from newer business lines. Spotify has recently moved into audiobooks and is planning to launch a 'super premium' service tier offering higher-quality music streams and other benefits. Netflix, meanwhile, is working to build up an advertising business that has been surprisingly slow going given its large subscriber base. Analysts estimate Netflix generated a little over $1.8 billion in ad-supported revenue last year, about 5% of the company's total revenue, according to Visible Alpha estimates. Expectations are high for this business: 'I think you can say that 2025 is the year that we transition from crawl to walk,' Netflix co-Chief Executive Officer Greg Peters said on the company's last earning call in January. Both companies are expected to show strong revenue and earnings growth in their coming first-quarter reports. Likewise, near-term business prospects will likely remain strong. Analysts expect Netflix to project 14% revenue growth for the second quarter when it reports results on Thursday, while Spotify's April 29 report is expected to include a forecast of at least 19% growth, according to FactSet estimates. And at least Netflix has some pretty ambitious goals for the longer term. Executives there are aiming to double the company's revenue by 2030—and triple its operating income in that time. That is according to internal plans following an annual business review last month, The Wall Street Journal reported on Monday. But the uncertain economic outlook caused by the past week's tariff gyrations cloud the picture for companies that are looking to grab a growing slice of consumer discretionary spending. Netflix and Spotify have skillfully made their services into must-haves for a huge number of users, but their growth prospects depend on those users having even more extra money in their pockets. Write to Dan Gallagher at
Yahoo
19-03-2025
- Business
- Yahoo
Meta Becomes Final Magnificent 7 Stock to Turn Negative in 2025
(Bloomberg) — Meta Platforms Inc. tumbled into negative territory for the year on Tuesday, becoming the last of the so-called Magnificent Seven stocks to lose its year-to-date gain. ICE Eyes Massive California Tent Facility Amid Space Constraints How Britain's Most Bike-Friendly New Town Got Built The Dark Prophet of Car-Clogged Cities Washington, DC, Region Braces for 'Devastating' Cuts from Congress NYC Plans for Flood Protection Without Federal Funds The Facebook parent fell 3.7%, extending a recent selloff that now has it down 0.5% for 2025. The decline is especially notable as it comes in the wake of a historic rally that saw shares gain for an unprecedented 20 straight sessions. At its peak, the stock climbed nearly 26% in 2025, but it has since erased all those gains. Meta has lost a certain amount of flexibility given their investments into artificial intelligence, according to KeyBanc Capital Markets analyst Justin Patterson, who cut his price target on the stock to $710 from $750, citing 'greater macro uncertainty.' 'The challenge we see today is that the AI cycle is increasing fixed costs' at Meta, 'which limits the ability to reduce expenses in a downturn,' Patterson wrote in a note, which also said Google parent Alphabet Inc., another Magnificent Seven company, faces similar headwinds. Tech has come under broad-based pressure this year as the economic outlook has been roiled by the Trump administration's policies on tariffs and questions about the direction of the AI trade. The Magnificent Seven stocks — Apple Inc., Microsoft Corp., Nvidia Corp., Inc., Tesla Inc., Alphabet and Meta — are seen as particular beneficiaries of AI. The Bloomberg Magnificent 7 Total Return Index is down 16% this year, and more than 20% off its December peak. Among notable decliners, Tesla has slumped 44% this year, while Alphabet and Apple are both down 15%, and Nvidia is off 14%. The index fell 2.5% on Tuesday. Meanwhile, the broader Nasdaq 100 Index is down 7.3% so far this year, recently falling into a correction. The tech-heavy index is currently more than 12% below its own peak. Big tech's two-year outperformance has made it a favored place for investors to take profits amid the uncertainty. (Updates to market close.) Tesla's Gamble on MAGA Customers Won't Work The Real Reason Trump Is Pushing 'Buy American' The Future of Higher Ed Is in Austin Snap CEO Evan Spiegel Bets Meta Can't Copy High-Tech Glasses Nvidia Looks Past DeepSeek and Tariffs for AI's Next Chapter ©2025 Bloomberg L.P. Sign in to access your portfolio
