Netflix’s stock gets a new bull. ‘Still not late to the party’
The Wall Street analyst who was on the side Netflix (NFLX) during last year’s big event, the stock finally became a force on the streaming video leader.
Bernstein analyst Laurent Yoon upgraded Netflix stock to either outperform or neutral. It has raised its price plan from Rs 975 to Rs 1,200.
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In morning trading on the stock market today, Netflix stock was down a fraction to 975.25.
In a client note Friday, Yoon said he believes it’s “still not late to the party.”
“There are more questions than answers about the key drivers of Netflix’s long-term growth (e.g., sports, advertising, gaming), but what we do know gives us enough confidence for a delayed upgrade, even at the current price point,” Yun said.
Yoon believes another year of double-digit subscriber growth is achievable in international markets by 2025. Netflix predicted it would surpass 330 million subscribers worldwide this year, up from 301.6 million at the end of 2024.
“There are a lot of eyeballs left for entertainment,” Yun said. “Netflix’s expansion of local language content has been a critical driver of subscriber penetration in key non-English phone markets.”
In a conference call with analysts, Netflix executives indicated that the company only accounts for 6% of the revenue potential in the countries it serves.
Netflix stock jumped this week after the internet television network beat estimates for its fourth quarter. It added 18.91 million new subscribers in Q4, beating the consensus estimate of 10.18 million.
Netflix stock is on three IBD lists: Big cap 20, Stock Spotlight and SwingTrader.
Patrick Seitz at X, formerly of Twitter, at @IBD_PSeitz For more stories on consumer technology, software and semiconductor stocks.
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