Netflix shares surged to a record high Friday, a day after the streaming giant reported strong third-quarter earnings.
Netflix (NFLX) shares soared to a record high on Friday, following a strong third-quarter earnings report that surpassed expectations. Several analysts raised their price targets for the streaming giant, citing its leadership in the industry. Bank of America increased its target to $800 from $740, highlighting Netflix as “one of the best positioned companies within media” due to its multiple growth drivers, including a rapidly expanding ad business.
The company’s ad-supported membership grew by 35% quarter-over-quarter, and Netflix announced plans to launch an ad tech platform by 2025. JPMorgan raised its price target even higher, to $850 from $750, and praised Netflix’s strong leadership position, calling it a “top pick” due to its “virtuous circle” of growing subscribers, revenue, and profits.
As of Friday, roughly 75% of the 20 analysts covering Netflix maintained a “buy” or equivalent rating. Their average price target was $777.21, close to Friday’s closing price of $763.89, after an 11% surge. Netflix shares have gained nearly 57% year-to-date.
Despite some delays caused by the 2023 writers and actors strikes, Netflix said its content volume is rebounding, delivering several hits in the quarter. Notable successes include The Perfect Couple, starring Nicole Kidman and Liev Schreiber, with 65.2 million views, and Nobody Wants This, a romantic comedy featuring Kristen Bell and Adam Brody, which garnered 37 million views.
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