"The outlook for 2025 - 11 to 13% revenue growth, is said to be driven both by sub growth - which will no longer be disclosed in 2025 - and [average revenue per member]," he wrote, while sticking with a neutral rating but boosting his price target to $680 from $635.
Netflix has outperformed the broader market so far in 2024, up 55% vs the S&P 500's 23% gain. Unsurprisingly, Wall Street is bullish on the blue chip stock. According to S&P Global Market Intelligence, the consensus recommendation among the 48 analysts covering the Magnificent 7 stock is a Buy.
The average price target for Netflix is $729.53. This is based on 37 Wall Streets Analysts 12-month price targets, issued in the past 3 months. The highest analyst price target is $900.00 ,the lowest forecast is $545.00. The average price target represents 0.93% Increase from the current price of $722.79.
Netflix had around 282.7 million paid subscribers worldwide as of the third quarter of 2024. This marked an increase of over five million subscribers compared with the previous quarter.
In the third quarter of 2024, Netflix generated total revenue of nearly 9.8 billion U.S. dollars, up from about 8.5 billion in the corresponding quarter of 2023.
Netflix will be enacting a lower-priced tier that will allow those who want to watch Netflix content but are willing to pay less to watch with ads, similar to Hulu and other competitors. In the future, Netflix subscribers will be given the choice of how they watch based on what they are willing to spend.
Netflix's internal forecasts call for 15% revenue growth in the fourth quarter, the company said in its shareholder letter Thursday. Analysts had been modeling $10.04 billion in revenue, or about 14% above last year's levels.
In reporting Q3 2024 results that beat analyst forecasts, the company provided a forecast of revenue for next year: For 2025, Netflix is forecasting revenue of $43 billion-$44 billion, which would represent growth of 11%-13% compared with its 2024 revenue guidance of $38.9 billion.
The S&P 500's overall PEG is currently about 0.9; Netflix's PEG is 1.47, suggesting Netflix is significantly overvalued after accounting for its growth. Price-to-sales ratio is another important valuation metric, particularly for unprofitable companies and growth stocks.
The all-time high Netflix stock closing price was 730.29 on October 10, 2024. The Netflix 52-week high stock price is 736.00, which is 4.8% above the current share price. The Netflix 52-week low stock price is 395.62, which is 43.6% below the current share price.
What is the Netflix stock price forecast for 12 months?
Based on analysts' average price target of $444.39, Wall Street expects potential upside of about 23% in the next 12 months. The highest target price stands at $600 and the lowest at $215 for Netflix.
On average, Wall Street analysts predict that Netflix's share price could reach $710.37 by Aug 30, 2025. The average Netflix stock price prediction forecasts a potential upside of 1.91% from the current NFLX share price of $697.06.
His core view is still the same: “Netflix is clearly the dominant paid global streaming player for the foreseeable future with the ability to generate solid subscriber growth and average revenue per user (ARPU) growth, given its already massive scale continues to expand margins and generate large healthy free cash flow ...
Following the latest results, Netflix's 45 analysts are now forecasting revenues of US$38.6b in 2024. This would be a notable 10% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 21% to US$18.07.
Revenue at Netflix rose 15% to $9.83bn, as net income increased 41% to $2.36bn. Subscription growth did slow significantly, however, renewing questions about the trajectory of its vast base. Netflix added 9.3 million and 8.1 million customers in previous quarters this year.
Netflix remains a top SVOD service with over 282.7 million paid subscribers globally as of Q3 2024. This marks a growth of 22.42 million compared to the 260.28 million subscribers recorded in 2023.
Competitors like Disney+, HBO Max, and Amazon Prime Video are vying for viewers' attention. Netflix, however, remains a dominant force in the industry, constantly evolving and adapting to stay ahead of the curve.
Wilmot Reed Hastings Jr. (born October 8, 1960) is an American billionaire businessman. He is the co-founder and executive chairman of Netflix, and is on a number of boards and non-profit organizations.
