Why on rally 40% of Netflix shares (NFLX) still have a place to launch News ad

Stock Netflix Inc. NASDAQ: NFLX were in absolute tears in recent weeks.

They are now more than 40% From the first week of April, breakthrough of previous records and entry into Refined against namingField

While such a step tends to cause concern about overheating, especially with RSI now at 68There is still Two main reasons To believe that the rally can continue until the summer, and why any rollback should be considered as the possibility of buying.

1. Fundamentals red hot

Netflix’s latest release release firmly laid its Growth history In the spotlight. Company reported on the earnings of the first quarter and the income that was ahead of expectation, with the last 12.5% ​​in annual calculusField

But most of all, operating metrics stood out. Operational income rose by 27%Bye The operating margin reached 32%from 28% a year earlierThe control field also controlled by even higher profitIN Forecasting 33% of margin for the second quarter And confirm them The purpose of the whole year 29%Field

The perspective of the highest link was also updated. Netflix now expects an income for a year between 43.5 billion dollars and $ 44.5 billionCompared to the previous leadership and The above consensus estimatesField

This reflects not only the increase in prices and the increase in membership, but also A sharp increase in advertising incomeWhich, according to the company, will approximately doubled in 2025.

The growth of the subscriber was another outstanding.

Netflix added 18.91 million pure new subscribers In the quarter, blowing Expectations 9.18 millionThis field was the highest quarterly clean addition in the history of the company, showing that the platform is still gaining momentum, despite the growing competition and maturity of the market.

2. Wall -stroke becomes louder

After this report on the explosion, analysts began to review their goals above. Last week, Wolfe Research confirmed its bull position And he released a new target price of $ 1340. This repeated the call from Robert Bair WHO raised his target to $ 1300Bye Canaccord Genuity Group I went even further Call for $ 1380Field

These goals imply more than 15% up from the place where the action Closed on Monday. This is a significant forecast for Netflix, especially after such a strong launch. It also shows that many believe that this is not the best, but a new base line, which the next leg can handle higher.

These Bull forecasts Supported by Netflix monetize your subscriber base Thanks to prices, premium content and fast -growing advertising business. Given the growth of subscribers and growing profitability, the company is performed at the level of a few Technical giants may correspond.

Why one large company has just become careful

Even when shooting Netflix at all cylinders, some analysts begin to voice caution, not about business, but about the short -term setting of shares. On Monday JP Morgan lowered Netflix to neutral from overweightReferring to a more balanced risk/reward profile after a significant rally rally.

With shares achieved record -high high and trade approximately 39x 2026 income And 44x free cash flowThe assessment began to limit the potential in the short term.

The company still sees Netflix as a long -term leader In the global streaming, controlled by the content of the highest level, acceleration of profitability and the dominant position in the transition from linear television.

Nose Macro conditions improve And the expansion of the appetite of market risk, the team expects some capital rotation from defense names such as Netflix in relation to more battered sectors.

What to see in the coming weeks

They also noted that after recent events, such as the company Preliminary presentationNetflix may face a calmer period on the front of the catalyst when it goes to the summer, even with Strong content Q3 on the deckField

Nevertheless The structural bull remains untouchedThe Netflix ability is scaled around the world, increase advertising income and maintain an advantage in content means that kickbacks should be considered in the context: as a natural pause in a long -term upward trendNot a change.

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