- Netflix (NFLX) stock rose 3.88% to $953.30 on Monday after MoffettNathanson’s Robert Fishman upgraded it to ‘Buy’ from ‘Neutral,’ lifting his price target to $1,100 from $850, citing its victory in the streaming wars and growth potential.
- Despite a 10% month-over-month drop and an 11% decline from its 52-week high of $1,064.50, Fishman highlights Netflix’s 302 million subscribers as a foundation for increased content spending, engagement, and profitability.
- The upgrade reflects confidence in Netflix’s first-mover advantage, with its vast content driving a cycle of subscriber growth and pricing power, even as it plans to stop reporting subscriber data in 2025.
Netflix’s (NFLX) stock surged 3.88% to $953.30 in midday trading on Monday, buoyed by a bullish upgrade from MoffettNathanson analyst Robert Fishman, who shifted his rating to ‘Buy’ from ‘Neutral’ and raised his full-year price target to $1,100 from $850. Fishman’s confidence stems from Netflix’s commanding position in the streaming landscape, declaring the company the undisputed victor in the streaming wars—a stance underscored by its sprawling subscriber base of nearly 302 million worldwide. This scale, he argues, equips Netflix with the financial muscle to pour resources into content, fostering a cycle of heightened engagement, subscriber growth, and enhanced pricing power, all of which promise to unlock greater profitability in the years ahead.
Despite this optimism, Netflix has not been immune to recent market turbulence, with its stock shedding over 10% month-over-month and slipping nearly 11% from its 52-week peak of $1,064.50, reached just a month ago, as a broader sell-off hammers tech heavyweights. Fishman, however, sees this dip as a buying opportunity, emphasizing that Netflix’s first-mover advantage in streaming remains a potent driver of its resilience and potential. The company’s vast content library, fueled by its ability to outspend rivals, continues to captivate audiences, setting it apart in a competitive field where engagement translates directly into revenue potential. Notably, Netflix’s decision to cease reporting subscriber numbers starting in 2025 shifts the focus to other metrics, like monetization and profit margins, which Fishman believes will shine as the company leverages its dominance.
The broader context of Netflix’s journey reveals a company adept at navigating shifts in consumer behavior and industry dynamics. With a $393 billion market cap bolstered by Monday’s nearly 4% gain, the stock reflects renewed investor faith in its growth trajectory, even amid a choppy tech sector. Fishman’s $1,100 target suggests a belief that Netflix can climb beyond its recent high of $1,064.50, driven by its ability to convert its 302 million subscribers into a more lucrative revenue stream. This upgrade arrives at a pivotal moment, as Netflix balances its legacy as a streaming pioneer with the challenge of sustaining momentum in a crowded, evolving market, positioning it as a standout amid the tech sector’s current volatility.
WallStreetPit does not provide investment advice. All rights reserved.
Leave a Reply