/Netflix%20on%20tv%20with%20remote%20by%20freestocks%20via%20Unsplash.jpg)
Streaming giant Netflix (NFLX) continues to amaze investors with its steady and rapid growth. It stands out as one of the few tech giants that has been least affected by this year’s broader market selloff, with the stock up 8.6% year to date.
Many analysts believe that the company’s subscription model is resilient in the face of current headwinds. JPMorgan analyst Doug Anmuth stated that Netflix should prove defensive against macroeconomic challenges thanks to its strong engagement, affordability, and low-priced ad tier, which makes the platform more accessible..
Additionally, last year’s crackdown on password sharing turned the tables, as Netflix added a record 41 million new subscribers, bringing its global total to 300 million. With its ability to attract new subscribers, expand content offerings, effectively monetize user engagement, and scale its advertising business, the discussion on whether NFLX is a potential buy remains compelling.
About Netflix Stock
Founded in 1997, Netflix (NFLX) is a leading streaming company offering a broad range of entertainment services. Operating in nearly 190 countries, Netflix is expanding into live streaming. Last year, the company made global headlines by broadcasting its first live sports event, a boxing match that set a record with 65 million concurrent viewers.
Netflix's ad-supported subscription tier, which was introduced in November 2022, has now reached 70 million global monthly users. This tier offers a more affordable option for price-sensitive audiences, along with enhanced content personalization and interactive features. This strategic shift aims not only to attract new subscribers, but also to counter growing competition in the global streaming market.
Valued at $426.6 billion by market cap, NFLX shares have surged about 55% over the past 52 weeks, far exceeding the S&P 500 Index ($SPX). Over the past six months, NFLX rallied 36% while broader indices remained flat, showcasing its resilience amid market headwinds.
Talking about valuation, NFLX is trading at roughly 39x forward earnings and around 9x forward sales, which is substantially above the sector median of 12.7x and 1.2x, respectively. However, these metrics give a modest discount from its own historical average of 44x earnings.
NFLX Delivered Beat-and-Raise Quarter
Netflix shares popped 14% after the streaming giant reported Q4 results that surpassed analyst expectations on both revenue and earnings. The company posted $10.2 billion in revenue, a 16% increase year-over-year, with earnings per share climbing to $4.27 from $2.11 last year.
In a historic quarter, Netflix added a record 19 million new subscribers in Q4 2024, marking its largest quarterly gain ever. Over the past three months, ad-supported subscriptions increased 35% from the previous quarter, with over half of the new sign-ups in eligible regions opting for this lower-cost option.
This robust performance has led the company to raise its full-year 2025 revenue guidance to between $43.5 billion and $44.5 billion, $500 million higher than previously forecast.
Looking ahead, analysts expect the next quarter’s revenue to hit around $10.5 billion and EPS to reach $5.74, underscoring the company’s ongoing growth momentum.
What Do Analysts Say About NFLX Stock?
Analysts are quite overwhelmed by Netflix's performance so far. JPMorgan has remained bullish on the company, assigning a price target of $1,150 and praising the company for crossing 300 million global subscribers.
Moffett Nathanson also upgraded NFLX stock from “Neutral” to “Buy,” citing that the boost in user engagement is anticipated to help the streaming giant unlock new monetization opportunities and drive higher profitability in the future.
“As Netflix builds out its ad capabilities, we believe the company will also be able to effectively ramp monetization of this unlocked incremental subscriber ad-tier TAM,” stated Moffett Nathanson. The brokerage has increased its price target for Netflix to $1,100.
Overall, Netflix is a consensus “Moderate Buy” on Wall Street. Among 41 analysts in coverage, 27 have given a “Strong Buy,” two have rated it as “Moderate Buy,” 11 have recommended a “Hold,” and one has given a “Moderate Sell” rating to NFLX stock.
The average 12-month price target of $1,082.42 presents upside potential of 11.7%, while its Street-high target of $1,494 indicates nearly a 55% premium over current levels.
