Piper Jaffray analyst Michael Olson says his analysis of Netflix search trends points to a "solid" Q2, with potential for domestic subscriber upside and in-line international subs. . Specifically, Q2 guidance calls for 8.2% year-over-year domestic subscriber growth and the search index points to 11.7% growth, Olson tells investors in a research note. For international, Q2 guidance calls for 36.5% year-over-year sub growth and the index says 45.8%, adds the analyst. Olson views the search index as "directionally positive" for Netflix's domestic and relatively in-line for international through two months of Q2. However, Netflix investors do not appear to be expecting material upside, with the stock down 5% since the company's Q1 report, Olson writes. He keeps an Overweight rating on the shares with a $440 price target.

Canaccord analyst Maria Ripps downgraded Netflix to Hold from Buy with a price target of $585, down from $720.

Check out this evening's top movers from around Wall Street, compiled by The Fly. HIGHER AFTER EARNINGSMetropolitan... To see the rest of the story go to thefly.com. See Story Here

Netflix said in its quarterly letter to investors: "We have built a hard to replicate combination of a strong slate, superior recommendations, broad reach and intense fandom, which drives healthy engagement on Netflix. Improvement in these key areas is the best way to delight our members and continue to grow our business." The company added: "Net cash generated by operating activities in Q1 was $2.2B and free cash flow totaled $2.1B (both flat with Q1'23). During the quarter, we paid down $400M of senior notes with cash on hand and we repurchased 3.6M shares for $2B. We finished the quarter with gross debt of $14B and cash and cash equivalents of $7B. We're still forecasting full year 2024 free cash flow of approximately $6B, assuming no material swings in F/X, and cash content spend of up to $17B."

Pre-earnings options volume in Netflix is 1.1x normal with calls leading puts 5:4. Implied volatility suggests the market is anticipating a move near 7.3%, or $44.89, after results are released. Median move over the past eight quarters is 9.6%.

Netflix (NFLX) is scheduled to report its first quarter 2024 financial results and business outlook on Thursday, April 18. A video interview... To see the rest of the story go to thefly.com. See Story Here