Netflix beats Q4 expectations, with strong revenue growth and a potential $1,100 stock price target

From Nasdaq: 2025-01-24 08:42:00

Netflix’s exceptional fourth-quarter 2024 performance, with 18.9 million new subscribers, sets the stage for a transformative year ahead. Shares surged 75.2% in the past year, outperforming tech giants like Apple, Amazon, and Disney. The stock could potentially reach $1,100 in 2025, indicating significant upside from current levels.

Netflix demonstrated robust financials, with fourth-quarter revenues up 16% year over year to $10.25 billion. Operating income increased 52% to $2.27 billion, with operating margins expanding to 22.2%. The company raised its 2025 operating margin target to 29%, reflecting strong profit potential. Engagement levels of two hours per membership per day validate Netflix’s value proposition.

The ad-supported plans on Netflix are thriving, accounting for more than 55% of sign-ups in the fourth quarter. Membership on ads plans grew nearly 30% quarter over quarter, and the company expects to double its advertising revenues in 2025. Recent price increases across tiers demonstrate pricing power and revenue growth potential.

Netflix’s content slate for 2025 includes returning hits like Squid Game and live events like the Jake Paul-Mike Tyson fight. The acquisition of FIFA Women’s World Cup rights enhances its live sports offerings. With only 6% market capture, Netflix has substantial room for expansion in its target markets.

A $1,100 price target for Netflix in 2025 is feasible, driven by revenue growth, operating margin expansion, and advertising revenue doubling. With a strong content pipeline and subscriber growth, Netflix is well-positioned for sustained growth. Analysts project 13.1% revenue growth and 21.89% earnings per share growth for 2025.



Read more at Nasdaq: NFLX Beats Q4 Expectations: Here’s Why the Stock Could Hit $1100 Soon