When it comes to the realm of streaming video, there’s one reigning champion: Netflix (NASDAQ: NFLX). As the unrivaled pioneer in internet-delivered television, Netflix stands tall amidst a sea of competitors. Despite the streaming wars fading from the forefront in recent times, Netflix continues to shine as the dominant force in this domain.
Just recently, Netflix quietly reached a new milestone by hitting an all-time high exceeding $700 per share, surpassing its previous peak set in late 2021. This achievement adds to Netflix’s monumental growth story. Since its initial public offering in early 2002, Netflix stock has skyrocketed by a staggering 63,725% as of the latest market close.
Amidst its relatively subdued presence in recent years, there are compelling indications suggesting that Netflix’s stock has the potential to climb even higher.
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1. Growing Advertising Business
Netflix made waves recently with its remarkable performance in the “upfronts,” showcasing a 150% year-over-year surge in ad sales, fueled by its burgeoning ad-supported plan. The appeal of its flagship content to advertisers, combined with ventures into live events, has contributed to this growth.
2. Abundance of Hit Shows
Netflix boasts a rich array of hit series that have captivated audiences and advertisers alike. From favorites like Squid Game and Stranger Things to newer gems such as Outer Banks, the platform offers a treasure trove of compelling content.
3. Expansion into Sports Programming
Netflix’s move into live sports has marked a notable shift in strategy, with ventures like The Netflix Cup and The Netflix Slam, along with securing exclusive rights to WWE’s Raw. The upcoming NFL broadcasts indicate a strategic foray into attracting diverse viewership.
4. Surging Subscriber Base
Despite intense competition from major players like Amazon Prime Video and Disney+, Netflix continues to excel with 278 million streaming paid memberships, showing a 17% year-over-year increase. The addition of the ad-supported tier has significantly bolstered subscriber growth.
5. Revenue Growth and Profitability
Netflix’s ability to draw subscribers and wield pricing power has propelled its revenue and profits to new heights. Despite economic challenges, the company achieved a 7% revenue growth and a 21% spike in earnings per share in the previous year, with even stronger performances evident in the current year.
Favorable Analyst Sentiments
Industry analysts echo the optimism surrounding Netflix, with a majority rating the stock as a buy or strong buy. Pivotal Research’s Jeff Wlodarczak, a staunch supporter of Netflix, foresees additional upside potential in the stock, emphasizing Netflix’s commanding position in the global streaming landscape.
Given Netflix’s commanding market presence, financial prowess, and positive trajectory, it’s evident that Netflix stock holds significant promise for investors.
Contemplating a $1,000 Investment in Netflix?
Before diving into Netflix stock, it’s prudent to weigh the considerations:
The Motley Fool Stock Advisor analyst team recently identified compelling reasons that make investing inNetflix worth considering.
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