Netflix, the streaming giant, is poised for strong revenue growth in 2024 and 2025, according to JPMorgan analyst Doug Anmuth. Anmuth maintains an Overweight rating and a $750 price target for NFLX stock. He believes Netflix is well-positioned to benefit from several growth drivers, including margin expansion, robust free cash flow, and increased subscriber figures.
Anmuth highlights Netflix’s resilience during economic downturns, noting that its subscription service is perceived as valuable even with price increases. He also believes Netflix has better control over its advertising market compared to competitors.
Netflix is expected to see a boost in subscribers from initiatives like paid sharing and organic growth in key regions like Europe, the Middle East, and Africa (EMEA) and Asia Pacific (APC). Furthermore, a potential price increase for the ad-supported tier, similar to Disney+’s recent hike, could further enhance revenue.
The analyst also points to the potential of live events to drive subscriber growth. Netflix’s recent foray into live sports, including the Jake Paul-Mike Tyson boxing match and NFL games, is seen as a strategic move to attract new viewers. Anmuth believes Netflix will continue to invest in live sports content, leveraging its global reach and strong engagement to become the preferred platform for entertainment.
Netflix has been actively investing in content, allocating approximately $17 billion this year, but it’s not heavily reliant on AI spending like some tech companies. Anmuth is confident that Netflix’s diverse content library, strong engagement, and global scale will make it the go-to choice for viewers seeking TV, movies, and other long-form content.
