Netflix Inc (Nasdaq: ) has been an exceptionally lucrative investment since 2022. Some of its investors have even been able to 5x their capital in less than three years.But is this streaming giant done pleasing its shareholders yet? Perhaps not – says Jeffrey Wlodarczak of Pivotal Research Group.The analyst reiterated his “buy” rating on Netflix stock today and raised the price target to $1,100 which translates to another 27% upside from here.
Netflix stock is the winner in streaming
Jeffrey Wlodarczak turned super bullish on NFLX following its live stream of Mike Tyson vs. Jake Paul notched a total of 108 million viewers worldwide.The record-breaking number confirms that Netflix is and will likely remain an undefeated winner in streaming, he told clients in a research note on Wednesday.
We expect Netflix to accelerate its offerings of eventized live programming, which further enhances its ability to offer households regular compelling content.
Pivotal’s new price target on Netflix stock bakes in a potential ramp in subscriber growth following the most-streamed sporting event on record. The mass media behemoth added 5.1 million subscribers in – well above the 4.5 million that experts had forecast as ad-tier memberships increased 35% sequentially.Netflix stock is currently up more than 85% versus the start of 2024.
NFLX is well ahead of its rivals
A strong free cash flow and continued subscriber growth help Netflix stand out in the world of streaming considering its rivals are still wrestling with significant losses and lackluster subscriber additions.Jeffrey Wlodarczak expects “other players to continue to sell their premium library content to NFLX to offset their power returns and tap into its 600M global viewers to increase content value.”In October, the Nasdaq-listed firm raised its revenue guidance that it now expects will fall between $43 billion and $44 billion in 2025. According to the Pivotal Research analyst, “Netflix has won the global streaming race … this is what winning looks like.”Netflix stock does not, however, pay a dividend in writing.
Netflix is strengthening its footprint in advertising
Netflix Inc looks attractive also because advertising is quickly turning into an for this entertainment giant.While the management expects advertising to take another year or two before it becomes a primary growth driver, the ad tier already accounted for more than half of the total sign-ups in the third quarter (in countries where it has been launched so far).NFLX earned $5.40 a share on $9.83 billion in revenue in its fiscal Q3 – well ahead of the $5.12 per share and $9.77 billion that experts had forecast.The streaming platform is scheduled to release the second season of “Squid Game” in late December which may help accelerate subscriber growth in 2025. On the back of such tailwinds, it does look like Netflix shares will hit $1,000 in the first half of next year.More By This Author:
