Netflix shares near all-time highs: $1,000 target in sight News ad

Netflix today

$902.17 +4.43 (+0.49%)

(As of 12/03/2024 ET)

52 week range

$445.73

▼

$908.00

P/E ratio

51.06

Target price

$775.58

Streaming giant shares Netflix Inc. NASDAQ: NFLX were in a deplorable state this year, so 2024 will go down in the history books. The stock is up nearly 100% since January and hit new all-time highs as recently as late November. Heading into the final few weeks of the year, all signs point to the streaming giant reaching even greater heights in 2025.

There are a few reasons why investors should be worried about where this stock will go in the coming months as $1,000 seems increasingly within reach. Let’s get started and see why this promotion deserves a place on your Christmas wish list.

Netflix Fundamentals Continue to Impress Investors

First, let’s take a look at Netflix’s fundamental performance, which has been stellar. The company beat analysts’ expectations with its latest earnings report in October, building on strong results that look set to continue into 2025. record.

Since holiday releases and increased subscriber activity typically lead to fourth-quarter success, it’s always an exciting time to consider getting involved. The company’s recent focus on monetizing password sharing and expanding ad support levels has begun to bear fruit, giving Netflix a solid foundation for further growth. Investors should expect the company to continue to perform well and the stock to continue to rise.

Bullish Analyst Predicts Optimism for Netflix Stock

Based on strong fundamentals, some analysts are extremely bullish on Netflix’s prospects, and investors should take note. Just this week, Evercore ISI reaffirmed its “outperform” rating on Netflix shares, as well as its $950 price target.

This builds on an equally bullish stance from Pivotal Research, which set a high price target of $1,100 at the end of last November. Based on last night’s close, this indicates a target upside of over 20%. If Netflix shares reach this level in the coming weeks, they will also reach new all-time highs and head into blue sky territory.

Much of Pivotal’s optimism stems from Netflix’s recent foray into live streaming, as evidenced by the Mike Tyson-Jake Paul fight. The event, broadcast to 65 million households, demonstrated Netflix’s ability to reach a huge audience, opening the door for similar ventures in the future.

According to Pivotal, Netflix is ​​well positioned to capitalize on the live streaming format as forecasts for subscriber growth and average revenue per user support their goal. Don’t be surprised if we see the same bullish outlook in the coming weeks.

An RSI pullback to 60-70 could offer a better entry point for cautious investors

While bulls dominate the conversation about where Netflix stock is likely to head, it’s worth acknowledging some of the more cautious tones among analysts. Canaccord Genuity Group, for example, this week reiterated its Hold rating on the stock. However, even they raised their price target to $940, which remains well above last month’s high of around $905.

There is also a question about Netflix’s technical indicators. Despite all the recent gains, the stock’s RSI is currently above 70, indicating an overbought condition, although it is below the frothy levels of 83 seen earlier in the quarter. A more cautious investor might want to wait until the RSI falls back towards the 60-70 level, but if you are on the long side, you kind of want a warm RSI as it confirms that momentum is very much alive.

Let’s take part: Netflix shares are poised for even bigger profits

All things considered, Netflix is ​​a tech stock worth watching closely, especially if it continues to set higher highs in the coming weeks. With the benchmark S&P 500 index currently at record highs and the Fed cutting interest rates, broader risk sentiment is heavily on Netflix’s side. Investors should expect further gains over the rest of the year, with a $1,000 price point looking highly likely in the near term.

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