Netflix (NFLX) shares have experienced a significant boost, marking their fifth straight day of gains and setting the stage for the company’s largest weekly percentage increase since January, spurred by the high-profile boxing match between Mike Tyson and Jake Paul. The stock touched an intraday high of $906 on Friday and was last seen trading up by 0.07% at $898.24. Since the event on November 15, Netflix’s stock has climbed nearly 10%, benefiting from what analysts have described as a strategic win for the company’s live events initiative.
The match attracted an impressive 108 million viewers worldwide, showcasing Netflix’s potential in live sports broadcasting. Jake Paul, a 27-year-old social media star turned boxer, emerged victorious against the legendary 58-year-old Mike Tyson, with the fight being streamed live on the platform. This event not only highlighted Netflix’s streaming capabilities but also underscored its ambition to expand into live content.
Post-event, the investment community has shown strong support. BofA Global Research, for instance, adjusted their price target to $1,000 from $800, reflecting the positive reception. Similarly, Jefferies analysts echoed the sentiment by increasing their 12-month target for Netflix to $1,000, citing the event as a pivotal moment in Netflix’s venture into live events.
Analyst sentiment remains overwhelmingly positive, with the median 12-month price target standing at $800. According to LSEG data, out of the analysts covering Netflix, 31 have given a “buy” or “strong buy” rating, 14 have recommended a “hold,” and only two have suggested a “sell.” This broad analyst support is indicative of the confidence in Netflix’s strategic direction, particularly in its nascent but promising venture into live sports and events.
Kenneth Leon from CFRA Research pointed out that while advertising is still in its infancy for Netflix, it’s poised to become a significant revenue stream by 2026. This optimism is mirrored in CFRA’s decision to raise their price target on the stock.
With these developments, Netflix’s stock has seen an approximate 85% rise for the year, highlighting the market’s favorable response to its content strategy and growth potential.
Reference: Reuters
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