HomeMost Popular The Potential Upside of Netflix Stock Growth: Analyst Insights and Market Sentiment

The Potential Upside of Netflix Stock Growth: Analyst Insights and Market Sentiment

Actionable Trade Ideas

always free

Netflix, the streaming juggernaut among FAANG giants, has seen a remarkable evolution since its inception in 1997 when it focused on DVD rentals. Over the years, it deftly pivoted to digital streaming and has become a global entertainment behemoth. With an impressive subscriber base of nearly 260 million, Netflix stands tall as the 24th most visited website worldwide.

The Meteoric Rise YTD

Netflix stock has surged by 24.4% year-to-date, outpacing the broader S&P 500 Index by a substantial margin. Currently trading a mere 4.5% below its 52-week high, Netflixโ€™s trajectory has been nothing short of stellar in recent times.

ictf6rtwlaswc4ry
Source: www.barchart.com

In its Q4 earnings report released in January, Netflix showcased its financial prowess with a 12.5% year-over-year revenue surge to $8.83 billion. The standout performance was driven by a robust net subscriber growth of 13.1 million, smashing analystsโ€™ predictions by a wide margin.

Analystsโ€™ Divergent Perspectives

Evercore ISI recently upped Netflixโ€™s price target to $640, indicating a potential 5.7% upside. The firm emphasized Netflixโ€™s ability to broaden its user base through innovative subscription models. In contrast, Wedbush, while maintaining an โ€œOutperformโ€ rating, expressed caution about Netflixโ€™s investor appeal in 2024 compared to the previous year.

4cpz9cfy1cac46gb
Source: www.barchart.com

The Market Consensus

Despite differing opinions, analysts collectively rate Netflix as a โ€œModerate Buy,โ€ with a mean price target slightly below the current stock price. However, Wedbushโ€™s bullish target of $725, offering a hefty 19.7% premium, underscores the optimism surrounding Netflixโ€™s prospects.

Of the 40 analysts covering Netflix, 22 advocate a โ€œStrong Buy,โ€ reinforcing positive sentiment. While opinions vary, the consensus remains cautiously optimistic about Netflixโ€™s future trajectory.

On the date of publication, Ruchi Gupta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Swing Trading Ideas and Market Commentary

Need some new swing ideas? Get free weekly swing ideas and market commentary from Jonathan Bernstein here: Swing Trading.

Explore More

Weekly In-Depth Market Analysis and Actionable Trade Ideas

Get institutional-level analysis and trade ideas to take your trading to the next level, sign up for free and become apart of the community.