All eyes will be on Netflix (NFLX) Tuesday afternoon when the streaming giant reports its first quarter earnings. Citi Managing Director Jason Bazinet is bullish on the company, giving Netflix a buy rating and a $400 price target, but he still sees challenges ahead.
"The problem is you've got two narratives running through the net ad number," Bazinet says. "You've got the ad tier, which I think is going to be quite positive for net ads over the next three to four years...[but] the noise part of it is they're simultaneously cracking down on password sharing."
"We just need to get through all of this password-sharing noise and just get back to the signal, which is the benefit of the ad tier."
Listen to Dave Briggs and Ines Ferre's entire interview here.
KEY VIDEO MOMENTS:
0:08 Bazinet on the challenges Netflix and its investors face this earnings season
0:41 Bazinet on how investors could react once the numbers come out
