Bristol-Myers is a biopharmaceutical company that discovers, develops, and delivers innovative pharmaceutical medicines to combat serious diseases such as cancer and cardiovascular disease. Its primary focus is cancer, cardiovascular, immunology, and fibrotic therapeutic projects. Its products are sold worldwide to hospitals, retail pharmacies, government agencies, and wholesalers.

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Hedge Funds Sell

Hedge Funds adjusted their portfolios in the third quarter of 2022, and the aggregate 13F shares held decreased to approximately 207.2 million from 210.8 million, a reduction of about 1.8%. Overall, 15 hedge funds created new positions, 152 added, 40 exited, and 135 reduced their stakes. Institutions lowered their holdings by about 0.9% to $1.61 billion from $1.62 billion.

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Positive Estimates

Analysts expect a rise in earnings through 2023, with year-over-year increases in growth that could bring earnings per share to $7.95 by December 2023, up from a projected $7.62 for December 2022. Revenue predictions are favorable, with an expected increase to about $47.1 billion by the end of 2023, up from an estimated $45.9 billion in 2022. The 13F metrics between 2005 and 2022 show that the stock value and funds held remain on an upward trend.

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Analysts Are Cautious

Analyst Trung Huynh of Credit Suisse Group initiated coverage of Bristol-Myers in November with a Neutral rating. Huynh set a $78 price target for the pharmaceutical stock, factoring in Bristol-Myers’ promising pipeline and market competition. Bristol-Myers’ research and development efforts may bring new drugs and more effective pharmaceutical treatments to market.

Favorable Outlook

Bristol-Myers has seen a strong year of steady growth. The company’s track record and earnings projections through 2023 are encouraging. Demand for Bristol-Myers’ products remains strong, and this pharmaceutical stock is an attractive opportunity for long-term investment.

Danaher is a diversified global conglomerate that acquires and operates various manufacturing companies. Its general focus is on manufacturing and marketing medical, industrial, professional, and commercial products. The company operates through three core segments: Life Sciences, Diagnostics, and Environmental & Applied Solutions (EAS). However, Danaher announced in September 2022 that it would spin off its EAS segment to focus more on the firm’s life sciences and diagnostics businesses; Danaher reported that the divesture should be complete by the fourth quarter of 2023.

As Danaher implements its strategic business decisions, it navigates external factors such as market volatility and fluctuating demand. As a global science and technology innovator, Danaher’s growth was initially boosted by the Coronavirus pandemic when their life sciences research tools and diagnostic tests were highly sought after. However, as the pandemic progressed and vaccines became available, life began normalizing, and demand for Danaher’s products leveled off.

(WhaleWisdom)

Mixed Responses from Hedge Funds and Institutions

Hedge funds sold in the third quarter, and the aggregate 13F shares held decreased to about 118.8 million from 119.3 million, a decrease of approximately 0.4%. Of the hedge funds, 28 created new positions, 146 added to an existing position, 27 exited, and 135 reduced their position. In contrast to hedge funds, institutions increased aggregate holdings by about 0.9% to approximately 562.5 million from 557.7 million.

(WhaleWisdom)

Earnings Decline Forecasted

An earnings decrease may be inevitable for Danaher as it manages changes to its business segments and rides the rollercoaster of this bear market. Analysts predict earnings per share of $10.41 by December 2023, a decrease from an estimated $10.52 for December 2022. Revenue estimates also indicate a slide, with a projected decline to $30.7 billion by 2023, down from an estimated $30.8 billion in revenue for 2022.

Analysts Pull Price Targets

Analysts have been lowering price targets on the stock. RBC Capital Market’s Conor McNamara recently lowered its price target, influenced by Danaher’s decision to separate the EAS business, which McNamara noted will reduce exposure to economic cyclicality. McNamara decreased the firm’s price target to $293 from $302 while maintaining an Outperform rating on shares. This reduction builds on RBC Capital’s earlier October price target, trimming it to $302 from $318. Barclays analyst Luke Sergott also adjusted the firm’s price target to $277 from $285, maintaining an Overweight rating on Danaher.

Fair Outlook

Danaher has experienced a challenging year. While Danaher currently has a strong position on the WhaleWisdom Heat Map, it is also notable that analysts’ forecasted earnings through 2023 show no immediate sign of a rebound. Existing stockholders may choose to hold onto shares and regain their investments as the company navigates a bear market. New investors may be cautious but also see long-term growth opportunities from continued demand for Danaher’s diversified product offerings.

Illumina is a biotechnology company that provides sequencing and array-based solutions for genetic and genomic analysis. Its products and services enable the adoption of genomic solutions in research and clinical settings. Illumina’s customers include a range of government, academic, pharmaceutical, biotechnology, and clinical research institutions worldwide. As part of the biotechnology (biotech) industry, the company faced challenges from the Coronavirus pandemic. The biotech industry was upended when the pandemic hit, as research & development, clinical trials, and travel were initially halted by government mandates and restrictions. Research activities were also impacted by COVID-19 as researchers and research participants became infected with the virus, and new research efforts were developed to study the virus’ genome. Like many other biotechnology companies, Illumina continues to rebound from pandemic disruptions while facing macroeconomic challenges.

(WhaleWisdom)

Hedge Funds Are Buying

Illumina has the attention of hedge fund managers and institutions. In the third quarter of 2022, the aggregate 13F shares held by hedge funds increased to about 35.2 million from 28.6 million, an increase of approximately 23.4%. Of the hedge funds, 30 created new positions, 75 added to an existing position, 39 exited, and 57 reduced their position. Institutions also added to portfolios and aggregate holdings increased by about 2.9% to approximately 138.4 million from 134.5 million. The long-term 13F metrics between 2005 and 2022 show that Illumina has some ground to regain.

(WhaleWisdom)

Encouraging Multi-year Earnings

Analysts predict earnings per share will rise, increasing to $3.15 by December 2023, up from an anticipated $2.41 for late December 2022. Strong growth is expected to bring revenue to roughly $5.1 billion by December 2023, up from an estimated $4.6 billion in 2022.

(WhaleWisdom)

Analysts Adjust Price Targets

There have been mixed responses from analysts due to Illumina’s recent performance. Analyst David Westenberg of Piper Sandler & Co. lowered the firm’s price target on Illumina to $300 from $320 and kept an Overweight rating on shares. Westenberg updated his analysis following missed earnings expectations for the third quarter. Canaccord Genuity Group, Inc. analyst Kyle Mikson lowered the firm’s price target to $330 from $340 and held a Buy rating on Illumina. Analyst Dan Brennan of Cowen & Company, LLC took a different approach to Illumina, swayed by a positive 2023 outlook for Illumina’s new NovaSeq X Systems, which allows large-scale data-intensive sequencing applications. Brennan raised the firm’s price target to $350 from $327 and maintained an Outperform rating on the stock.

Fair Long-Term Outlook

Illumina experienced a challenging year amid market volatility, but there is potential for a rebound. Illumina’s innovative biotechnologies and life science tools continue to be relevant and in demand for global research endeavors. With optimistic earnings estimates through 2023 from analysts, in addition to institutions and hedge funds buying, the stock is one for patient investors.

Workday is a cloud-based human capital management (HCM), financial management, enterprise performance management (EPM), and student information system software, vendor. Its cloud-based software solutions offer organizations critical business solutions and analytics tools worldwide. HCM solutions provide talent management, performance management, compensation, and succession planning capabilities to help customers attract, develop, and retain their workforce. Financial Management solutions include automated processes that allow clients to divert their time and focus away from transaction processing and more on the big picture through data analytics. The company’s student information systems are designed to support students and leaders of educational institutions through flexible programs. EPM solutions include financial management, talent management, enterprise planning, and spend management. Workday brings in revenue from client subscriptions and software sales through a software-as-a-service (SaaS) delivery model.

Despite seeing stock volatility in the past year, the Coronavirus pandemic considerably impacted Workday. Government restrictions and corporate safety measures pushed workforces to remote and hybrid work schedules. Workday was able to capitalize on the shift to remote work and increase its corporate client subscriptions as more and more companies migrated to the cloud and needed applications to efficiently manage critical business operations such as payroll and human resources. Workday has invested in research and development and has made strategic acquisitions over the years to diversify and expand its offerings for a more resilient business model.

(WhaleWisdom)

Hedge Funds Are Buying

Workday has the attention of hedge fund managers, who were actively buying the stock in the third quarter. Hedge funds’ aggregate 13F shares held in the third quarter increased to about 63.7 million from 61.0 million, an increase of approximately 4.4%. Of the hedge funds, 47 created new positions, 80 added to an existing one, 28 exited, and 67 reduced their stakes. In contrast, institutions were selling, and aggregate holdings decreased mildly by about 0.7% to approximately 171.4 million from 172.4 million. The long-term 13F metrics between 2014 and 2022 suggest that despite Workday’s stock price volatility this year, it remains on a slow upward trend.

(WhaleWisdom)

Encouraging Multi-year Estimates

Analysts anticipate earnings will rise through 2024, with year-over-year increases in growth that could bring earnings to $4.45 per share by January 2024, up from a projected $3.39 for 2023. Revenue predictions are also favorable, with revenue expected to increase to about $7.4 billion by January 2024, up from an estimated $6.2 billion in January 2023.

(WhaleWisdom)

Analysts Adjust Ratings

Due to recent market volatility and macro conditions, analysts appear to be proceeding with caution. Analyst John DiFucci of Guggenheim Investments upgraded the firm’s rating on Workday to Neutral from Sell, viewing shares as fairly valued while noting that Workday has a challenge in meeting long-term targets for subscription revenue growth. Analyst Brian White of Monness, Crespi, Hardt & Co., Inc. downgraded Workday to a Neutral rating from a Buy, noting that the next year will be challenging as the economy grows weaker. White shared optimism that Workday will continue expanding its cloud platform’s reach.

Favorable Outlook Beyond 2022

While Workday’s growth has slowed, hedge funds are still buying shares, and earnings estimates through 2024 are encouraging. Demand for the company’s cloud-based solutions should continue to grow revenue, and the technology stock presents an attractive long-term investment.

Texas Instruments is a technology company that designs and manufactures semiconductors and integrated circuits, selling them to electronics designers and manufacturers worldwide. The semiconductor industry has been highly impacted by inflation, Federal Reserve rate hikes, and supply-chain challenges, though demand for semiconductor chip technology remains strong.

The company’s business consists of two core operating segments, Analog and Embedded Processing, and Texas Instruments products are used across various industries. While some consumers initially think of Texas Instruments as the maker of scientific calculators required for high school and college math classes, Texas Instruments’ analog and embedded semiconductors are utilized in far more than education-based technology. Texas Instruments products are widely used in industrial, personal electronics, automotive, enterprise, and communications equipment markets. Manufacturers like Texas Instruments, who can support and meet the changing needs of artificial intelligence and Internet of Things (IoT) technologies, have opportunities for future growth in these markets.

(WhaleWisdom)

Hedge Funds and Institutions Trim Portfolios

Texas Instruments’ second-quarter activity included hedge funds selling. The aggregate 13F shares held by hedge funds decreased to about 128.5 million from 131.9 million, a change of approximately 2.6%. Of the hedge funds, 25 created new positions, 115 added to an existing one, 27 exited, and 123 reduced their stakes. Institutions also mildly decreased their aggregate holdings by about 0.8%, to approximately 758.0 million from 764.2 million.

(WhaleWisdom)

Earnings Decline Expected

Investors should prepare for the long game as analysts cut their earnings estimates for Texas Instruments. Earnings are expected to decrease to $8.00 by December 2023, down from an expected $9.52 for December 2022. Revenue is expected to decline to roughly $18.4 billion by December 2023, down from 20.0 billion in 2022. However, despite less than favorable earnings and revenue estimates through 2023, the long-term 13F metrics between 2005 and 2022 suggest that Texas Instrument’s investment potential remains strong.

(WhaleWisdom)

Analysts Cut Targets

Analyst Christopher Rolland of Susquehanna Financial Group reacted to the signs of a slowdown in demand in the semiconductor industry. He lowered the firm’s price target on Texas Instruments to $195 from $215, maintaining a Positive Rating on shares. While weaker demand in some markets is likely temporary, other analysts have followed suit in lowering price targets. Citi analyst Christopher Danely kept a Neutral rating on Texas Instruments and lowered the firm’s price target to $155. While Texas Instruments reported favorable third-quarter results, fourth-quarter guidance fell below consensus. Analyst John Vinh of KeyBanc Capital Markets lowered the firm’s price target on Texas Instruments to $210 from $220 and kept an Overweight rating on shares.

Favorable Long-Term Outlook

Market volatility and semiconductor manufacturing challenges have taken their toll on this technology stock. Understandably, analysts have lowered price targets as the earnings outlook through 2023 decreases. As Texas Instruments’ stock continues moving in a positive direction and demand for semiconductor chips becomes stronger, there is optimism for sales and earnings growth beyond 2023. Existing investors should hold onto this stock as it presents an excellent long-term investment opportunity.

Tesla is a multinational automotive and clean energy company that designs, develops, manufactures, and sells electric vehicles (EVs), energy generation products, and energy storage systems. Tesla has made its mark on the automotive industry, and the market for Tesla’s EVs continues to grow as a larger volume of consumers seek to lower their carbon footprint while also appreciating Tesla’s unique luxury vehicles. The company’s energy generation and storage business, run through its Tesla Energy subsidiary, has grown in 2022 despite market challenges.

Tesla has opened several new factories over the past two years, both nationally in the US and overseas, supporting manufacturing expansion and meeting the demand for its products. New factories in Texas and Germany represent some of the most significant new additions and produce lithium-ion batteries for EVs, among other energy devices. Tesla continues to see increased competition in the EV space. However, its investment in battery technology and overall efficiency continues to give them an advantage. Recent concerns in the news related to Tesla’s primary founder, Elon Musk’s, back-and-forth decisions about buying Twitter, Inc. Some investors have concerns about whether this purchase will require selling more Tesla shares. Over the past year, Tesla has also been negatively impacted by economic and political factors but continues to move forward with production and innovation.

Mixed Results from Hedge Funds and Institutions

Tesla saw mixed results during the 2022 second-quarter activity, and the aggregate 13F shares held by hedge funds decreased to about 165.9 million from 175.2 million, a decrease of approximately 5.3%. Of the hedge funds, 28 created new positions, 188 added, 50 exited, and 117 reduced their stakes. In contrast to hedge funds, institutions were buying. Overall, institutions increased their aggregate holdings by about 3.2% to approximately 1.34 billion from 1.29 billion. The 13F metrics between 2012 and 2022 are a good reflection of Tesla’s ability for growth despite a rocky path of upward mobility.

(WhaleWisdom)

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Favorable Estimates

Analysts estimate that year-over-year increases will bring earnings to $5.86 per share by December 2023, up from December 2022’s predicted $4.31 earnings. Revenue estimates are also encouraging, expecting approximately $85.1 billion by December 2022 and a rise to about $120.0 billion by December 2023.

Analysts React to Missed Expectations

Analyst Ryan Brinkman of JPMorgan Chase & Co. kept an Underweight rating on shares and raised the firm’s price target on Tesla to $153 from $137. Even after Tesla’s third quarter (Q3) vehicle deliveries tracked below consensus estimates, Brinkman maintained his estimates. While Tesla expanded production capacity, some factory locations, such as the Shanghai plant, have continued to face shutdowns and delays related to Coronavirus lockdowns and restrictions. While Tesla has reported record delivery figures, the volume has not met consensus expectations, and there are concerns regarding demand. Oppenheimer & Co. Inc. analyst Colin Rusch acknowledged that the Q3 deliveries did not meet expectations but still advised that Tesla shares are a buy and is optimistic about fourth quarter (Q4) deliveries. Deutsche Bank’s analyst, Emmanuel Rosner, also reported Q3’s deliveries being shy of expectations and lowered his Q3 revenue and earnings forecasts.

Positive Outlook Ahead

While Tesla’s growth has slowed, revenue and earnings predictions through 2023 are encouraging. The company has taken measures to expand its manufacturing capacity and continues to innovate its clean energy solutions and expand its EV portfolio. Demand for Tesla’s products and solutions is likely to gain strength, especially with a long-term shift by consumers to electric vehicles. The stock’s trends suggest the company is still a buy for patient investors.

Adobe is a digital media software company offering its products and services worldwide. Originally known as Adobe Systems, Inc., it operates through a segmented business model that includes Digital Media, Digital Experience, Marketing, Print, and Publishing. One of Adobe’s flagship products is Creative Cloud, a subscription service offering access to its products. The company is also well known for its Photoshop image editing software, Acrobat Reader, and the Portable Document Format (PDF). Adobe’s target customers span from enterprises to individual customers.

The software company announced in mid-September that it would purchase Figma for about $20 billion in cash and shares. Figma is a collaborative web application for interface design that is popular with designers and developers. While the business venture may strengthen creative collaboration, the acquisition announcement contributed to a dip in Adobe’s stock performance in recent weeks.

Hedge Funds and Institutions Sell

Hedge Funds adjusted their portfolios in the second quarter, and the aggregate 13F shares held decreased to approximately $82.1 million from $83.4 million, a reduction of about 1.6%. Overall, 35 hedge funds created new positions, 173 added to an existing one, 44 closed out exited, and 147 reduced their stakes. Institutions lowered their holdings by about 1.6% to $374.2 million.

Encouraging Multi-year Estimates

Analysts predict earnings per share will rise in the coming years, increasing to $15.57 by November 2023, up from an expected $13.62 for November 2022. The company’s performance is anticipated to bring revenue to roughly $19.9 billion by early 2023, up from an estimated $17.6 billion in 2022. While Adobe’s stock has declined in recent months, funds held have stayed on a fairly consistent upward trend.

Analysts Respond to Acquisition News

Analyst Michael Turrin of Wells Fargo Securities lowered his firm’s rating on the stock to Equal-weight following news of Adobe’s acquisition of Figma. The pricy purchase should be completed in 2023, and many analysts are concerned about slower interim growth. Edward Jones’ analyst, Logan Purk, also downgraded Adobe, despite seeing the long-term merits of the investment. Evercore ISI’s analyst, Kirk Materne, shared enthusiasm about the acquisition of Figma and gave Adobe an Outperform rating.

Cause for Optimism Beyond 2022

While Adobe’s growth has slowed, earnings and revenue estimates through 2023 are encouraging. Analysts see the strategic, long-term potential of Adobe’s recent acquisition.

Investors may be hesitant; however, Adobe has the potential to rise again within the coming years.

HCA Healthcare, Inc. (HCA) experienced stock fluctuation over the past year but has seen growth in recent months. HCA’s stock underperformed the S&P 500, falling by approximately 21% year-to-date compared to the S&P’s loss of about 10%. However, hedge funds were buying, and the health care services company was added to the WhaleWisdom Whale 100 Index on August 16, 2022.

HCA Healthcare owns and operates healthcare facilities across the United States and the United Kingdom. Its medical facilities include a range of hospitals, medical clinics, and ambulatory care sites, offering inpatient care, intensive care, cardiac care, diagnostic, and emergency services. HCA Healthcare’s potential for growth depends upon patient volume and revenue collected from patients and third-party insurance payers. The Coronavirus pandemic has stressed HCA Healthcare and the healthcare industry, contributing to surges in some areas of business, declines in others, and rising medical costs.

(WhaleWisdom)

Hedge Funds Are Buying

HCA Healthcare saw a mixed response from hedge funds and institutions in the second quarter of 2022. Hedge Funds added to their portfolios in the second quarter, and the aggregate 13F shares increased to approximately 69.6 million from 62.7 million, a gain of about 11.0%. Overall, 31 hedge funds created new positions, 90 added, 39 exited, and 64 reduced their stakes. Institutions adjusted their portfolios, lowering their holdings by about 4.8% to 187.1 million shares.

(WhaleWisdom)

Positive Estimates

Analysts expect to see revenue rise through 2023 with year-over-year growth that could increase revenue to $63.4 billion by December 2023. Analysts are also optimistic about earnings and predict earnings per share of $17.26 by December 2022 and $19.05 by December 2023. The company’s 13F metrics show a span of upward mobility between 2012 and 2022, demonstrating HCA Healthcare’s investment potential.

(WhaleWisdom)

Analysts Raise Price Targets

Analyst John Ransom of Raymond James & Associates raised the firm’s price target on HCA Healthcare to $250 from $230 and kept an Outperform rating on shares following an analysis of second quarter results and labor trends. SVB Securities analyst Whit Mayo held an Outperform rating on HCA Healthcare’s shares and raised the firm’s price target to $259 from $240. Ann Hynes of Mizuho Securities Co. maintained a Buy rating on shares and raised their firm’s price target to $230 from $210.

Favorable Outlook Beyond 2022

HCA Healthcare’s growth history has been strong, and hedge funds are bullish on the stock. Past trends and analysts’ predictions for increased earnings bring optimism for the future. HCA Healthcare’s facilities and services will likely see continued demand, and investors may see the stock as an excellent long-term investment.

S&P Global, formerly known as McGraw-Hill Inc., is a corporation focused on financial information and analytics. It is a parent company with six key business lines: Commodity Insights, Dow Jones Indices, Engineering Solutions, S&P Global Market Intelligence, and S&P Global Ratings. S&P Global and its subsidiaries collectively provide independent credit ratings, analytics, benchmarks, and workflow solutions for various worldwide markets, deriving much of its revenue from recurring subscription fees. Earlier this year, S&P Global merged with IHS Markit Ltd. with a focus on combining their complementary assets and technological capabilities to serve customers better.

Hedge Funds and Institutions Sell

Hedge Funds adjusted their portfolios in the second quarter, and the aggregate 13F shares held decreased to approximately $59.6 million from $67.5 million, a slide of about 11.8%. Overall, 28 hedge funds created new positions, 117 added, 48 exited, and 126 reduced their holdings. Institutions also sold and lowered their holdings by about 5.7% to $290.9 million.

(WhaleWisdom)

Encouraging Estimates

Analysts anticipate positive revenue momentum, with growth increases that could bring revenue to approximately $13.0 billion by December 2023, up from an estimated $12.0 billion in 2022. Year-over-year estimated increases could also bring earnings to $13.87 per share by December 2023, up from a predicted $11.48 for December 2022. The 13F metrics between 2007 and 2022 show that funds held remain on an upward trajectory despite fluctuations in S&P Global’s stock price.

(WhaleWisdom)

Analysts Increase Ratings

Analysts have become bullish on the stock, raising their price targets and ratings. Analyst Sameer Kalucha of Deutsche Bank raised the firm’s price target on S&P Global to $450 from $435 and kept a Buy rating on shares. Morgan Stanley analyst Toni Kaplan adjusted the firm’s price target to $476 from $460. Kaplan believes that Ratings revenue will increase and maintains an Overweight rating on S&P Global’s shares. RBC Capital Markets initiated coverage of S&P Global with an Outperform rating. Analyst Ashish Sabadra of RBC Capital thought well of the February 2022 acquisition of IHS Markit and set a price target of $476.

Fair Outlook

S&P Global’s performance has shown improvement in recent months, and there are predictions for continued revenue growth. As businesses and governments continue leveraging data analytics and technology to make better decisions, S&P Global’s services will likely see ongoing demand. Analysts’ 2023 earnings estimate for S&P Global is encouraging for investors.

Netflix is an entertainment services company that provides streaming content. Netflix offers on-demand subscriptions to allow viewers to see many of their favorite television (TV) shows, movies, and documentaries and play mobile games. The company produces and co-produces Netflix Original content in addition to acquiring rights for film and tv titles from other production studios. Subscribers to the platform may watch content through any device connected to the internet, such as smart TVs, smartphones, and laptop computers. Netflix is one of the largest streaming providers globally, though its origin began with DVD rentals by mail, a service the company continues to offer. While Netflix saw a boost in subscribers at the coronavirus pandemic, it has since seen losses due to various factors, including subscribers closing accounts, ending its operations in Russia, and competing streaming services. The company also continues to lose revenue due to customers’ password sharing, a practice it’s taking action to curb.

Hedge Funds and Institutions Sell

Hedge Funds adjusted their portfolios in the second quarter, and the aggregate 13F shares held decreased to approximately $70.8 million from $73.4 million, a slide of about 3.6%. Overall, 50 hedge funds created new positions, 139 added, 114 exited, and 99 reduced their stakes. Institutions lowered their holdings by about 3.3% to $333.7 million from 345.2 million.

(WhaleWisdom)

Encouraging Multi-year Estimates

Analysts expect to see earnings rise through 2023, with year-over-year increases in growth that could bring earnings to $10.93 per share by December 2023, up from a projected $10.30 for 2022. Revenue predictions are also favorable, with revenue expected to increase to about $34.2 billion by 2023, up from an estimated $31.7 billion. Netflix’s 13F metrics between 2005 and 2022 reflect the company’s fluctuating stock price amid market volatility and recent hits to its subscriber base.

(WhaleWisdom)

Mixed Responses from Analysts

Analyst Andrew Uerkwitz of Jefferies Group LLC lowered the firm’s price target on Netflix to $230 from $243 and kept a Hold rating on shares. Jeffries shared cautious optimism for the next quarter if strategically ad-supported content can help boost subscribers higher and the company can reduce losses from customer password-sharing. Tim Nollen of Macquarie Bank enthusiastically raised the firm’s price target on Netflix to $230 from $170 and upgraded the company to a Neutral rating, noting the company’s long-term potential.

Optimistic Long-term Outlook

After a disappointing start to the year, Netflix is likely to see a rebound, as the long-term trends for the company are favorable. While hedge funds were selling and growth has declined this year, analysts have shared optimistic earnings and revenue estimates for 2022 and 2023. Netflix is working to recover lost subscriber fees and continues to utilize viewership data trends to improve its content and boost revenue. The stock should recover over time as demand for the company’s entertainment services continues.