Netflix pullback means opportunity, Oppenheimer says
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Another analyst sees opportunity in a pullback at Netflix (NASDAQ:NFLX), as Oppenheimer reiterated its Outperform rating against some recent worries about execution on the streamer's new initiatives. 
The stock initially traded higher vs. the market following fourth-quarter earnings (+20% vs. the Nasdaq +11%), analyst Jason Helfstein noted, but then it sold off 22% vs. the Nasdaq's 7% decline. 
That came alongside "fears around higher churn from enforcing password sharing, slower ad launch, and Fed fears," Helfstein noted. But "nothing has changed from our original thesis: advertising increases the [total addressable market], content competition is easing, and paid account sharing will be a long-term tailwind." 
First-quarter engagement is trending weaker than the last two quarters, but in line with a six-quarter average, he said. And it looks like what was a key competitive threat may be moderating, as rivals increasingly shift their focus to profit: Netflix posted strong streaming net adds in Q4 (7.6M, more than most rivals and second only to 9.9M at Paramount+) and management pointed to lower churn. 
Investors are seeing the company's crackdown on account sharing as a headwind, but it should represent material revenue upside long term: depending on recapture rate, $2B-$8B, making up 6%-23% of Oppenheimer's 2023 revenue estimate, Helfstein said. 
The firm has a 12- to 18-month price target of $415, implying 39% upside ahead. 
Netflix is reportedly looking at alternative approaches to its advertising stack, including potentially doing more in-house.