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Netflix Stock Hits All-Time High as Analysts See ‘Little Pushback’ to Price Hikes
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Main points
- Netflix shares climbed to a record high on Wednesday after the company reported 19 million new subscribers in the fourth quarter and raised its outlook for 2025.
- The streamer also raised subscription prices, which analysts said could drive revenue growth with “little headwinds.”
- Following the results, analysts at several companies raised their target prices on the stock.
Netflix (NFLX) goes into 2025 after adding “All In” 19 million subscribers JPMorgan analysts said on Wednesday that the fourth-quarter results and raised the subscription price.
Netflix yesterday said it would raise prices, including on its popular ad-supported plan in the US from $6.99 to $7.99, following its “strongest content quarter ever”, analysts said.
JPMorgan Chase said that “entering 2025, we do not expect little headwinds in the United States.”
The price increase comes as Netflix’s ad-supported plans drove 55% of signups in Netflix’s fourth quarter in markets where the plans are available. That growth helped the company end the year with more than 300 million members, laying the foundation for further revenue growth in 2025, Wedbush analysts said.
Yesterday’s results sent Netflix’s stock price soaring today, with shares rising nearly 10% to close at an all-time high of $953.99. The stock led the S&P 500 higher, with some on Wall Street raising already bullish price targets.
JPMorgan and Wedbush both maintained buy or equivalent ratings and raised their price targets to $1,150. Analysts at Oppenheimer and UBS set identical targets based on the results. Bank of America raised its price target to $1,175.
“While massive user growth is the primary driver in 2024, we expect price increases to drive revenue growth in 2025 and the ad layer to drive higher revenue in 2026,” Wedbush said.
Updated – January. February 22, 2025: This article has been updated since it was first published to reflect the latest share price.
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