Although Netflix (NASDAQ:NFLX) reported yesterday that its subscriber base had meaningfully climbed last quarter, while its crackdown on password sharing was working, NFLX stock is sinking today and is down about 8%. The culprit appears to be the company’s weaker-than-expected full-year revenue guidance.

In the wake of the guidance miss, analysts’ outlook on the firm was mixed.

Earnings Details

Netflix’s subscriber base jumped 8%, or 5.89 million, last quarter versus the same period a year earlier, although its revenue increased just 2.7% year-over-year. Price reductions and currency fluctuations were partially responsible for the disparity, Bloomberg reported.

Meanwhile, when it comes to the password-sharing issue, NFLX reported on its earnings call that it had “made steady progress this year” but indicated that it would take additional steps going forward on the matter.

On the guidance front, NFLX predicted that its Q3 top line would come in at $8.52 billion, slightly below analysts’ average estimate of $8.67 billion. On the other hand, the company did note that it expects its revenue growth to increase in the second half of 2023.

NFLX Stock: Analysts’ Reaction

Barclays analyst Kannan Venkateshwar called Netflix’s 2023 growth outlook “unusual” and difficult to forecast. The analyst noted that the company’s average revenue per user had dropped slightly this quarter.

Piper Sandler’s Thomas Champion raised his price target on the name to $440 from $350 and stated that the company is starting to achieve its objectives when it comes to cracking down on password sharing and attracting users to its ad version. However, the analyst also noted that investors are worried about the company’s guidance miss. He kept a “neutral” rating on NFLX stock.

On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.