Netflix Stock rose to a seventh straight record high on Thursday, as there are fairly bullish projections ahead for the company, JPMorgan said. They climbed 0.8% to close at $837.26, in an intraday peak of $841. It has now surged nearly 72% so far this year, which shows the performance of such a diversified company.
Analyst Doug Anmuth from JPMorgan reconfirmed his position to “top pick” status, citing Netflix as the favorite through an overweight rating, and gave a price target of $850 on the shares. Client note cited the investor sentiment; it is still bullish as Netflix promises with its Q4 slate of content and offerings-both live and new releases such as Squid Game season two, Black Doves, and Maria-as well as NFL Christmas Day games and the Jake Paul vs. Mike Tyson boxing match.
Expansion of ad-supported plans and cracking down on sharing of Netflix passwords have helped the platform to garner over 50 million subscribers since early 2023, forcing its base to around 283 million users. Analysts point out such strategies push up short-term growth but might limit further momentum.
Economic and competitive pressures, including rising competition from Disney and niche streaming services, could hinder Netflix’s ability to add subscribers as rapidly as it has in the past. Furthermore, increasing content costs-they’re adding even more investment in live sports likely to eat into profit margins that have skyrocketed from 9% in 2019 to 22% in 2023.
The valuation is $840 per share, which is 42 times the expected 2024 earnings. This is a sign of growing concerns over its long-term sustainability. Its subscriber growth stabilization is projected to have potential risks, and the stock may see a steep correction.
Though that is true, Netflix continues to be the leader in this streaming business line, using its extensive libraries of content, coupled with various innovative strategies, to sustain its stronghold.
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