CNBC’s renowned investor Jim Cramer ignited a surge in Netflix (NFLX) stock Wednesday, issuing a resounding “buy” recommendation during his popular ‘Mad Money’ Lightning Round. The endorsement arrived as NFLX shares traded near $934, capitalizing on the broader strength within the tech sector and a wave of positive analyst sentiment.
Cramer’s bullish stance closely followed JPMorgan analyst Doug Anmuth’s upward revision of Netflix’s price target to $1,010 from $850. Anmuth’s optimism stems from robust subscriber growth projections and the increasingly substantial revenue generated by Netflix’s burgeoning advertising platform. This positive outlook is further fueled by Netflix’s recent achievement: the Jake Paul vs. Mike Tyson boxing match, which shattered previous streaming records, attracting a staggering 60 million households to watch live. This landmark event underscores the platform’s powerful ability to attract and retain a massive audience.
The success isn’t limited to live events. Netflix’s ad-supported tier is also experiencing phenomenal growth, boasting 70 million monthly active users and projecting a remarkable increase to 120 million by the end of 2025. JPMorgan’s forecast further bolsters the bullish narrative, predicting a 10 million subscriber addition in the fourth quarter alone. This anticipated growth, coupled with the expanding ad revenue stream, paints a picture of robust financial health for the streaming giant.
However, Cramer’s ‘Mad Money’ segment extended beyond Netflix. He expressed enthusiasm for Advanced Micro Devices (AMD), describing it as “cheap” despite its current position relative to NVIDIA (NVDA). He also expressed a degree of cautious optimism regarding Johnson & Johnson (JNJ), even acknowledging the ongoing talc litigation, while displaying less conviction in JD.com (JD), labeling it ‘too much of a stretch’.
The positive sentiment surrounding Netflix arrived on a momentous day for the tech industry. The Nasdaq Composite index decisively crossed the 20,000-point mark for the first time, closing at 20,034, a gain of 1.77%. This surge underscores the overall positive market sentiment fueling Netflix’s rise. While the Nasdaq celebrated, the broader market also saw the S&P 500 rise 0.82% to 6,084, although the Dow Jones Industrial Average experienced a slight dip, closing down 99.27 points at 44,148.
The impact of Cramer’s endorsement was immediately apparent. Netflix’s stock price jumped to $936.56, a 2.54% increase on Wednesday. While the after-hours trading session showed no further price change, the year-to-date performance is nothing short of spectacular, with a surge of $468.06, representing a 99.91% increase. While the consensus price target among 29 analysts stands at $810.45, ranging from a high of $1100 to a low of $550, recent ratings from JP Morgan, Citigroup, and Canaccord Genuity suggest a higher average target of $956.67, implying a further 2.43% upside potential. Over the past 52 weeks, Netflix’s stock has shown remarkable growth, increasing from $450.76 to $935.27, boasting a market capitalization of $399.25 billion and a P/E ratio of 51.63. Its RSI currently sits at 73. The confluence of these factors, including robust subscriber growth, expanding ad revenue, and positive analyst predictions, positions Netflix for continued success in the fiercely competitive streaming landscape.
