Netflix Inc. (NASDAQ:NFLX) ranks among the best FAANG stocks to buy according to hedge funds. On June 13, JPMorgan reaffirmed its $1,220 price target and Neutral rating for Netflix Inc. (NASDAQ:NFLX). The firm clarified that the reason for its previous May 19 downgrade to Neutral was not concerns about Netflix's dominant position in the streaming market, but rather that the risk/reward in NFLX shares has become more balanced after considerable stock price growth.
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Investors have consistently resisted JPMorgan in three areas since the May downgrade: the expectation that the second half content slate might be the strongest 6-month period ever, the beginning stages of advertising with potential for stronger monetization, and forecasts that estimates will rise in response to pricing power, advertising growth, and content strength.
That said, despite its growth potential, JPMorgan upheld its assessment that Netflix Inc. (NASDAQ:NFLX)'s shares are well owned and the risk/reward is less compelling, weighing the company's solid fundamentals against its current valuation measures.
Netflix Inc. (NASDAQ:NFLX) is a well-known global streaming platform that provides limitless access to a vast collection of films, TV series, and video games on devices with internet connections.
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