(This is CNBC Pro’s live coverage of Wednesday’s analyst calls and Wall Street chatter. Please refresh every 20-30 minutes to view the latest posts.) Big Tech was the focus of Wednesday’s early calls. Wall Street analysts reacted to Netflix’s fourth-quarter results, which sent shares soaring. The streaming giant posted weaker-than-expected earnings, but paid subscriptions came in above expectations. Elsewhere, Morgan Stanley gave its preview for Apple earnings due out next week. The bank expects the tech giant to report above-consensus results. Check out the latest calls and chatter below. All times ET. 5:46 a.m.: Netflix results were a ‘powerbomb’ after subscriber beat, Wall Street analysts say Wall Street analysts are bullish on Netflix after its latest results showed a “powerbomb” subscriber beat. Netflix shares popped 9% in premarket trading. The streaming platform added 13.1 million subscribers in its fourth quarter, beating analysts’ expectations of 8 million to 9 million, as the streaming platform cracked down on password sharing and continued to build on its ad tier. In her assessment, Bank of America analyst Jessica Reif Ehrlich called the results a “powerbomb,” highlighting the sustainability of Netflix’s growth from here. The analyst reiterated a buy rating on the company and hiked her price objective to $650 from $585, implying 32% upside for the stock from where it closed Tuesday. “Netflix exits 2023 with several drivers, which should buoy growth into 2024 and beyond including: 1) continued benefit from password sharing, 2) resumption of content following the strikes, 3) ramp up of their burgeoning ad business and 4) the benefit of Raw programming in 2025,” the BofA analyst wrote. Morgan Stanley’s Benjamin Swinburne also hiked his price target to $600 from $550, saying the results confirm his overweight thesis on the stock. “The financial output of 1) Netflix’s product and technology leadership and 2) the current favorable competitive landscape, by our estimates, is a business that should be able to ramp FCF from $6bn in ’24 to $10bn in ’26,” Swinburne wrote. Elsewhere, Goldman Sachs’ Eric Sheridan reiterated a neutral rating on the stock, but hiked his price target to $565 from $500. — Sarah Min 5:46 a.m.: Morgan Stanley sees earnings beat ahead for Apple Apple will likely report stronger-than-consensus fiscal first-quarter results thanks to strong iPhone sales, according to Morgan Stanley. Specifically, the bank sees earnings per share of $2.13 on revenue of $119 billion for the tech giant. However, the bank also warned of disappointing guidance from the company. “We expect Dec Q rev/EPS outperformance, driven by iPhone/Services, but a March Q rev guide $3B (3%) below Consensus,” analyst Erik Woodring wrote. “This is well understood by buy-side, and we expect earnings to serve as a clearing event, allowing investors to refocus on FY25 ‘Edge AI’ opportunity, and margin/Services resilience.” “As a result, we see earnings … as a ‘clearing event’ that will help to 1) reset NTM estimates lower and 2) allow investors to turn their attention towards what we believe will be a positive inflection in fundamentals in FY25, driven by an underappreciated Edge AI refresh cycle,” Woodring wrote. Apple shares got off to a rough start this year on concern over iPhone sales in China. However, the stock has since recovered and is now up more than 1% for 2024. AAPL YTD mountain AAPL in 2024 Apple is slated to report earnings on Feb 1. — Fred Imbert
