HSBC downgrades streaming company Netflix to Hold from Buy and cuts the price target to USD 76 from USD 96, while Buy and the USD 675 price target are reiterated for music streaming company Spotify.
HSBC believes that YouTube is taking an increasing share of viewing time from Netflix and sees no imminent recovery in engagement.
The bank raises its assumptions for customer churn and content costs and cuts its earnings per share forecasts for 2027-2028 by approximately 6-9 percent, to 7-9 percent below consensus.
Spotify is considered to be better insulated thanks to more homogeneous content and lower production risk.
