In late August, Netflix saw its shares break above the $700 mark, reaching an intraday record of $711.33. Even on a closing basis, the stock scaled as high as $698.54 on Aug. 20. Despite a slight pullback in recent days, shares still closed at $701.35 on Friday, showcasing the impressive growth of the stock. Year to date, shares are now around 44% higher, reflecting the strong performance of the company in 2024.
Analysts believe that Netflix has a significant advantage over its competitors in the streaming sector. Jason Helfstein, an analyst at Oppenheimer, stated that it’s challenging for competitors to offer consumers the same type of value proposition that Netflix provides. He believes that Netflix ultimately wins the global content game, highlighting the company’s strong position in the industry.
Despite fears of a weakening consumer and intensifying competition, analysts remain optimistic about Netflix’s ability to weather macro pressures. JPMorgan analyst Doug Anmuth pointed out that subscription services are generally more immune to economic headwinds. He believes that Netflix represents compelling value, even with ongoing price increases. Wedbush analyst Alicia Reese also emphasized the relative value proposition that Netflix offers consumers, especially in tighter economic conditions.
Analysts like Helfstein see a lot of potential in Netflix’s venture into streaming live sporting events. With the upcoming streaming of two of the National Football League’s Christmas Day games on the platform, Netflix is expanding its reach and attracting a broader audience. Reese also sees live sports events as a way for Netflix to further penetrate the global market. According to Evercore, live sports events provide a promising long-term revenue opportunity for Netflix.
Long-Term Outlook
Analysts like Mark Mahaney are bullish on Netflix’s long-term prospects. Despite the stock potentially being relatively expensive in the short term, analysts see a promising future for investors oriented towards the longer term. Helfstein echoed this sentiment by stating that there is currently no one who can challenge Netflix in terms of long-term opportunities.
Netflix’s stock has seen significant growth and reached record highs in 2024, despite facing increasing competition in the streaming sector. Analysts remain optimistic about the company’s competitive advantage, macro resilience, and prospects in streaming live sports events. Investors looking towards the long term may find Netflix to be a promising option, given the company’s strong financial position and market position.