Netflix Inc. (NFLX) is riding a wave of positive momentum after its third-quarter earnings report impressed analysts and sent the stock soaring. The streaming giant’s strong subscriber additions, healthy revenue growth, and optimistic outlook for 2025 have prompted analysts to raise price targets and reiterate bullish sentiments.
Analysts Sound the Bullish Horn
Several prominent analysts have weighed in on Netflix’s recent performance, with many raising their price targets and highlighting the company’s strong position in the media landscape.
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Bank of America:
Analyst Jessica Reif Ehrlich maintained a Buy rating and boosted the price target from $740 to $800, citing Netflix’s potential for continued growth driven by its expanding ad business, gaming initiatives, and foray into live and sports content.*
Macquarie:
Analyst Tim Nollen kept an Outperform rating and set a $795 price target, acknowledging the strong third-quarter results, particularly the robust subscriber additions and revenue growth. He also highlighted the solid fourth-quarter guidance, driven by anticipated growth in subscriber additions.*
KeyBanc:
Analyst Justin Patterson maintained an Overweight rating and increased the price target from $760 to $785. He noted the potential for future double-digit revenue growth based on the strong third-quarter performance and updates on the ad-supported plan.*
JPMorgan:
Analyst Doug Anmuth maintained an Overweight rating and raised the price target from $750 to $850, emphasizing Netflix’s strong content lineup and its position as a top pick for the firm. He expects Netflix to become the go-to platform for consumers seeking TV, film, and long-form content.*
Needham:
Analyst Laura Martin maintained a Buy rating and raised the price target from $700 to $800, highlighting the impressive subscriber growth, increased operating margins, and strong revenue and free cash flow guidance. She believes Netflix’s ad-supported plan is competitively priced and well-positioned for expansion.*
Piper Sandler:
Analyst Matt Farrell reiterated an Overweight rating and raised the price target from $800 to $840. He expressed confidence in Netflix’s strong execution and the company’s potential for a robust 2025, driven by subscriber growth and a healthy revenue trajectory.Key Growth Drivers
Analysts are particularly excited about Netflix’s multi-pronged growth strategy, which includes:
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Ad-supported plan:
The ad-supported plan, launched earlier this year, is gaining traction and has the potential to significantly expand Netflix’s reach.*
Gaming:
Netflix’s foray into mobile gaming is another avenue for growth, offering a unique and engaging experience for subscribers.*
Live content and sports:
The streaming giant’s investments in live content, including sports, are opening new avenues for monetization and attracting a broader audience.*
Price Increases:
While Netflix has not yet announced price increases for its ad-free plans in the U.S., analysts anticipate that price adjustments are likely in the near future, potentially driving further revenue growth.Netflix’s Future Outlook
The analysts’ consensus paints a positive picture for Netflix’s future. They expect continued growth fueled by a combination of factors, including subscriber additions, expansion of the ad-supported business, investments in compelling content, and potential price increases. Netflix appears well-positioned to capitalize on the evolving media landscape and maintain its leadership position in the streaming space.
Netflix Stock Performance
The company’s stock has responded favorably to the strong earnings report and positive analyst sentiment. NFLX stock closed up 10% on Friday, reaching $758.43, marking a significant gain for the year.
Looking Ahead
Netflix’s recent performance suggests a promising trajectory for the company. Its focus on innovation, content diversification, and a growing ad-supported business positions it for sustained growth in the competitive streaming market. Investors will be keen to see how Netflix executes on its strategic plan and delivers on its promises for 2025 and beyond.