Netflix Reaches 301 Million Subscribers in Q4 2024, Growth Potential Remains
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Yahoo Finance
- Subscriber Growth Potential: Netflix reached 301 million subscribers in Q4 2024, indicating significant growth potential as it still has room to expand within the 1 billion global addressable market for digital streaming services.
- Financial Performance: Despite pressure on net income from content amortization, Netflix maintains healthy cash flow and ongoing buyback programs, demonstrating the sustainability and profitability of its business model.
- Market Positioning: The company's pricing power is increasing as its service becomes essential for households, and initiatives like advertising and new business lines are expected to provide crucial support for future revenue diversification.
- Investor Confidence Issues: Despite strong performance, major investors like Ken Fisher and Jefferies Group have reduced their holdings in recent quarters, reflecting a cautious stance on Netflix's valuation, which may impact future institutional investment inflows.
NFLX
$93.64+Infinity%1D
Analyst Views on NFLX
Wall Street analysts forecast NFLX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NFLX is 139.13 USD with a low forecast of 95.00 USD and a high forecast of 160.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
36 Analyst Rating
28 Buy
7 Hold
1 Sell
Strong Buy
Current: 93.500
Low
95.00
Averages
139.13
High
160.00
Current: 93.500
Low
95.00
Averages
139.13
High
160.00
About NFLX
Netflix, Inc. is a provider of entertainment services. The Company acquires, licenses and produces content, including original programming. It provides paid memberships in over 190 countries offering television (TV) series, films and games across a variety of genres and languages. It allows members to play, pause and resume watching as much as they want, anytime, anywhere, and can change their plans at any time. The Company offers members the ability to receive streaming content through a host of Internet-connected devices, including TVs, digital video players, TV set-top boxes and mobile devices. It is engaged in scaling its streaming service, such as introducing games and advertising on its service, as well as offering live programming. It is developing technology and utilizing third-party cloud computing, technology and other services. The Company is also engaged in scaling its own studio operations to produce original content.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
