The online video streaming giant Netflix (NASDAQ: NFLX) boasts over 269.6 million subscribers, a staggering 688% increase from the 34.2 million it had in Q1 of fiscal year 2013.
This growth was reflected in the NFLX stock performance in 2024, which added 39.33% to its value and allowed it to reach a valuation of $654.50.
What sets Netflix apart from its competitors is its ability to evolve in a maturing market. By cracking down on password sharing and introducing advertising, Netflix has strengthened its competitive edge and sustained its growth.
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Furthermore, Netflix is venturing into broadcasting live events and sports, making things even more exciting. It has signed a massive $5 billion deal to stream WWE’s Raw and gained exclusive streaming rights for high-profile events such as Mike Tyson’s boxing match with influencer Jake Paul and an NFL game on Christmas Day.
Impressive financials could secure further Netflix growth
Netflix has shown impressive financial growth, with revenue increasing from $29.7 billion in 2021 to $33.7 billion in 2023 and net income rising from $5.1 billion to $5.4 billion over the same period. The first quarter of 2024 reported a 14.8% year-over-year increase in revenue to $9.4 billion and an almost 79% surge in net income to $2.3 billion.
Netflix’s membership base has also steadily grown, from 221.8 million at the end of 2021 to 269.6 million by Q1 2024, nearly a 22% increase.
Despite Netflix’s share of overall TV viewership being less than 10% in almost every country, there is significant potential for growth. The company’s diverse content slate has attracted millions of viewers, and its in-house films have received numerous Academy Award nominations, making it the most nominated studio for three of the past four years.
Wall Street recognizes NFLX stock potential
Experts on Wall Street recognize Netflix’s opportunity and potential, assigning it a” moderate-buy” rating. Of 36 analysts, 23 opted for “buy,” 12 recommended a “hold,” and only one advised a “sell.”
However, optimism about further growth diminishes regarding the average price target, which is set at $665.14 and represents only a 1.90% potential upside from the current NFLX stock price levels.
Pivotal Research Group’s Jeffrey Wlodarczak has set a new high price target for Netflix shares at $800, up from his previous target of $765. This makes him the most optimistic analyst on Wall Street.
Wlodarczak believes Netflix has decisively won the streaming wars, as evidenced by strong performance and raised guidance compared to its competitors.
He is also unconcerned about Netflix’s decision to stop reporting subscriber numbers after this year, comparing it to Apple’s (NASDAQ: AAPL) decision to stop disclosing iPhone unit growth in 2018, which did not hurt AAPL’s stock performance.
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