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Netflix and Uber Rated Outperform, Facebook Underperform at Evercore

Netflix and Uber make Evercore's outperform list, while Facebook is put on the firm's underperform list.

Netflix  (NFLX) - Get Netflix, Inc. Report and Uber (UBER) - Get Uber Technologies, Inc. Report were added to Evercore ISI's Tactical Outperform List Friday, while social-media giant Facebook  (FB) - Get Meta Platforms Inc. Class A Report was put on the investment firm's underperform list.

At last check Netflix was off 0.5% and Uber shares were higher by 2.6% while Facebook was heading south by 1.4%.

Analyst Mark Mahaney said Netflix and Uber were some of the "least riskiest Net stocks" in terms of consensus estimates heading into the quarter, according to the Fly.

Mahaney, who affirmed an outperform rating on Netflix with a $695 price target, said he expected content strength into the fourth quarter with a "muted" competitive slate. 

The analyst also said he expected Netflix's content strength to continue into 2022.

He added that the recent price increases in Europe could partly mitigate pressure on average revenue per user.

Netflix said this week that "Squid Game," a hyperviolent dystopian survival drama made by producers in Korea, has had the company's most successful debut.

The company joined with Walmart  (WMT) - Get Walmart Inc. Report to unveil Netflix Hub, a platform to sell Netflix merchandise.

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Netflix is scheduled to report earnings on Oct. 19 and several analysts increased their price targets.

Mahaney reiterated his outperform rating on Uber with a $70 price target.

Entry into the leading ride-share company and fastest growing online food delivery company "will provide meaningful upside" through the end of 2021 and into 2022, Mahaney said in a research note. 

He said he viewed the San Francisco company's valuation setup as "very attractive" at current share levels.

Meanwhile, Mahaney added Facebook to the firm's Tactical Underperform list, while keeping an outperform rating on the shares with a $450 price target.

He said he saw risk to Facebook shares into the third-quarter print. And he's become "more incrementally cautious" on the online advertising names in the back half of 2021 due to tougher comparisons and the "difficult" online retail environment.

Facebook has been on the receiving end of negative publicity recently after whistleblower Frances Haugen went public and blasted the company.

She urged members of Congress to change the regulatory framework in which the social networking giant operates.

The company, which also suffered an outage this month, is schedule to report earnings on October 25.