Netflix rises as Citi opens 30-day catalyst watch, citing ad tier
Mario Tama/Getty Images News
Netflix (NASDAQ:NFLX) shares rose nearly 1.5% in pre-market trading on Thursday as investment firm Citi opened a 30-day catalyst watch on the streaming giant, citing potential positives about its advertising tier.
Analyst Jason Bazinet, who has a buy rating on Netflix and boosted his per-share price target to $500 from $400, noted that it will be two full quarters since the launch of its ad tier when it reports second-quarter results next month, with expectations that some meaningful updates will be shared.
Bazinet also said the quarterly results should be aided by the password sharing crackdown in the U.S., which is more likely to drive ad-tier subscribers than higher-tier subscribers. 
"We would expect shares to respond positively to any incremental positive commentary on the firmâs ad-tier roll-out, which we believe will give investors incremental confidence in the progress of this initiative," Bazinet wrote in an investor note. 
Netflix (NFLX) is slated to report second-quarter results on July 19. A consensus of analysts expect the company to earn $2.85 per share on $8.26B in revenue.
More on Netflix

Potential double strike adds another twist to the Hollywood drama
Netflix: 3 Reasons Why It's Not Too Late To Buy, Yet
Netflix: Time To Prioritize Sports Broadcasting