Netflix shares have taken off against the background of record growth and bold forecasts News ad

Netflix today

$ 977.59 -7.27 (-0.74%)

As of 01.24.2025 16:00 East

52-week range

$ 542,01

▼

$ 999,00

Price/profit ratio

49.30

Target price

$ 1021.70

Netflix Nasdak: NFLKS The company’s shares took off after the profit and loss report for the fourth quarter of 2024 and updating forecasts for 2025, which was due to the presence of key levers that contributed to the growth of shares. These include growing attention to expanding the business and increasing the share value, and both indicators intensify with each quarter.

The conclusion is that the business has become stable and successful, and the quality has improved significantly. This once unsportged diamond is now the leader of the industry and the dominant player in a strong market, producing a steady cash flow and proving its value for investors.

Netflix created a lever for long -term growth in the fourth quarter of 2024

In the fourth quarter of 2024, Netflix showed a good quarter, which reflects the influence of the business-Levreiga, which continues to grow. The effect is manifested in the growing price of membership, growing membership and high involvement on the network. Thanks to this, quarterly revenue of $ 10.25 increased by 16.1%, exceeding the consensus of almost 150 basic points with a significant increase in the number of members. The number of members increased by 6.6% consistently and 16% compared to last year, setting the company’s records and having made significant profits.

News about marges are the driver of the promotional prices. The company’s efforts to improve the quality of work and the use of content have led to a significant increase in profit per quarter and for the whole year. The operating margin increased by 530 basic points per quarter and by 600 per year, and it is expected that the margin will increase in 2025. maintain the balance of the fortress and the recently acquired debt rating of the investment level.

The forecast is ambiguous with the forecast for the fourth quarter, it is lower than the consensus of analysts, but is compensated by the expected forecast and high probability of caution. Nevertheless, the company predicts steady growth, expressed by two -digit numbers, in 2025 with the strengthening of the second half and the strengthening of a fair wind in the advertising business. Advertising levels work well, contribute to an increase in the number of participants and expand.

Netflix increases the share value using a reliable reverse redemption program

Netflix cash flow and growth prospects leave it in a healthy financial situation, capable of ensuring a significant profitability of capital and an increase in capital profitability. The main points of the fourth quarter and 2024 include an increase in funds and assets, a reduction in debt and an increase in its own capital by 20%. Capital increase is aggravated by ransom of shares, which reduced their number by 1.6% in the fourth quarter and by 2.3% in annual terms. It is expected that the redemption rate will remain in 2025 due to an increase in the distribution. The Council increased the size of the resolution to more than $ 17 billion, which is almost three years in the pace of 2024.

Analysts react vigorously, increasing the promotion rating and increasing the target price in response to this news. The consensus rating is in the range “moderate purchase”, but is strengthened, bending to “buy”, with the target increase in prices by 5% after publication, by 15% since the end of 2024 and about 75% in the previous 12 months. The consensus suggests that the fair value is about $ 850, but the amendments made after the release set this share above 1,100 dollars with the probability of reaching $ 1,500. Rosenblattt made a bull forecast, which increased to “buy” with a target price of $ 1494.

Netflix has where to run

The Netflix schedule shows that this market has where to grow, and the price action is still significantly lower than the recently specified price range. The warning is that the actions after the release will create a gap in the beginning and provide an attractive output point. Over the past three years, shares have grown by almost 500% and have reached a record level. This market can retreat and close the gap before it moves up and sets new maximums of about 1,100 dollars or higher.

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