Netflix stock will carry on soaring, according to analysts, after the video-streaming company underlined its dominance by revealing it would be raising prices having added a record number of subscribers in the fourth quarter quarter.
Pivotal Research Group’s Jeffrey Wlodarczak raised his price target on Netflix stock to $1,250 from $1,100 on Tuesday, writing in a research note that the company’s latest results showed it had won the global streaming wars. He rates Netflix stock at Buy.
“This is what winning looks like,” Wlodarczak said, adding that the company benefits from a virtuous cycle where the bigger Netflix gets, the more cash it has to spend on content that sets it apart from the rivals. His price target — the highest among analysts who cover Netflix — implies the stock has 44% upside from Tuesday’s close.
Wlodarczak is one of at least 18 analysts who have raised their target price on Netflix stock since the company reported fourth-quarter earnings, according to FactSet.
Jefferies’ James Heaney said the streamer had posted a “near flawless” set of results, raising his price target to $1,200 from $1,000. He has a Buy rating on Netflix stock.
Heaney highlighted the 19 million subscribers the platform had added over the three months, adding that the growth was down to the company’s whole content library rather than a single program such as the controversial boxing match between internet influencer Jake Paul and heavyweight legend Mike Tyson. Netflix touted the Paul-Tyson fight, the second series of Squid Game, the action movie Carry-On, and the live NFL games it aired on Christmas Day in a letter to shareholders Tuesday.
J.P. Morgan’s Doug Anmuth also focused on the streamer’s content slate. The company “enters the new year firing on all cylinders,” and can carry on surging in 2025 thanks to higher prices and the growth of its ad-supported tier, he added, while increasing his own price target to $1,150 from $1,000. Anmuth rates Netflix stock at Overweight.
The flurry of upgrades comes after Netflix beat earnings and sales estimates and said it expected 2025 revenue of $43.5 billion to $44.5 billion. The midpoint of those figures is well above the $43.65 billion figure analysts were forecasting.
Factor in record subscriber numbers and price hikes, and it starts to look like a knockout quarter for the streamer. The stock has soared 60% over the past 12 months — and to hear Wall Street tell it, Netflix has won the Squid Game of streaming.