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Netflix (NFLX) shares have been on a roller-coaster ride over the last five years, surging on COVID-19 lockdowns and then falling from their highs as consumers returned to their pre-pandemic routines. As things have settled, Netflix appears to have maintained its streaming dominance, and this success has not gone unnoticed by Wall Street. Rosenblatt analyst Barton Crockett recently upgraded NFLX stock to a “Buy,” doubling his price target from $680 to an astonishing $1,494. Such a bullish call suggests that even after Netflix’s impressive gains over the past year, double-digit upside potential remains.
Could this upgraded target signal the perfect entry point for investors to capitalize on the stock’s strength? Let’s take a closer look.
About Netflix Stock
Founded in 1997 and headquartered in Los Gatos, California, Netflix (NFLX) transformed global entertainment, evolving from DVD rentals to an international streaming behemoth with a $417.9 billion market cap. Dominating the movie and TV streaming space, Netflix harnesses artificial intelligence (AI) to personalize content, fostering deep user engagement.
Shares of this mega-cap stock have rallied 70% over the past 52 weeks, outpacing the broader market return over the same time frame. NFLX stock has surged more than 13% in the past five days, hitting a record of $999, fueled by its impressive fourth-quarter earnings report last week.
In terms of valuation, the stock trades at 40.75 times forward earnings, which is lower than its own historical average.
Netflix’s Q4 Report Dazzled Wall Street
Netflix kicked off 2025 with a blockbuster Q4 2024 earnings report after the market close on Jan. 21, surpassing Wall Street’s expectations and sending its stock soaring nearly 10% the next day. Revenue surged 16% year over year to $10.25 billion, powered by record-breaking subscriber growth. Operating income climbed 52% annually to $2.3 billion, while EPS rocketed a whopping 102.4% to $4.27, beating projections by 1.7%.
Engagement remained robust, with members averaging two hours of daily viewing. The streamer added a historic 18.91 million subscribers, eclipsing the 13.12 million of the prior-year quarter. Growth spanned all regions, fueled by innovative live events like the Jake Paul vs. Mike Tyson fight and NFL games on Christmas Day. For 2024, Netflix added over 41 million subscribers, ending the quarter with 301.63 million paid members across over 190 countries.
Sports streaming and a crackdown on password-sharing bolstered the subscriber surge. Meanwhile, Netflix’s ad-supported tier proved a hit, attracting 55% of new subscribers in applicable markets.
Looking ahead, Netflix projects Q1 2025 revenue of $10.416 billion, up 11.2% year-over-year, with EPS forecast at $5.58. For the full fiscal year 2025, management anticipates revenue between $43.5 billion and $44.5 billion, with an operating margin of 29%, up from 27% in 2024. With a proven ability to adapt and innovate, Netflix continues to redefine streaming entertainment and captivate its ever-growing global audience.
Analysts tracking Netflix project the company’s profit to climb 23% year over year to $24.38 per share in 2025 and grow another 20% to $29.26 per share in 2026.
What Do Analysts Expect for Netflix Stock?
Netflix stole the spotlight after shattering Wall Street’s projections for new subscribers in Q4, sparking a surge in price-target upgrades. Rosenblatt Securities’ Barton Crockett led the charge, boosting his price target from $680 to $1,494 while upgrading the stock to a “Buy.” This Street-high target implies upside of 52.8%.
Crockett noted, “Netflix delivered on so many levels in Q4 2024 that the equity needs to be rethought,” pointing to rising ad revenue, price hikes, and resurgent viewer engagement fueled by its content lineup. Hits like Squid Game, Outer Banks, The Diplomat, and newcomers like Black Doves solidified its dominance.
Netflix’s strategic pivot to sports content has amplified its competitive edge, pressuring traditional TV rivals. Coupled with its ad-supported tier and subscription price increases, the company is building momentum. Crockett predicts Netflix will likely exceed its 2025 guidance of 14% to 17% revenue growth and a 29% profit margin, citing its current revenue growth and gross margin as indicators of robust potential.
Looking ahead, Crockett’s optimism hinges on Netflix’s sustained EPS growth, which justifies a lofty 45x P/E multiple for its 2026 projections. Having underestimated Netflix’s 2024 performance, Crockett now sees the streaming giant primed to ride this wave of success well into 2025 and beyond, cementing its status as a market leader worthy of premium valuation.
Meanwhile, Needham analysts boosted their price target to $1,150 from $800, citing Netflix’s soaring subscriber growth and expectations of doubling ad revenue by 2025.
Overall, NFLX has a consensus rating of “Moderate Buy.” Out of 41 analysts, 27 rate the stock as a “Strong Buy,” two advise a “Moderate Buy,” and 12 analysts are playing it safe with a “Hold.”
Even with NFLX's recent surge, the mean price target of $1,048.42 hints at 7.2% upside, underscoring promise.
