Netflix Stock Hit A New All-Time High: What's Going On?

Netflix Inc NFLX shares are trading higher by roughly 9% to $832 in November, marking a new all-time high. The stock has gained amid overall market strength after Donald Trump's re-election, with investors anticipating that his pro-business, tax-cutting agenda could drive increased consumer spending—especially in discretionary sectors like streaming.

The company also achieved a major milestone, announcing that its ad-supported streaming tier now reaches 70 million monthly active users—just two years after its launch.

What To Know: Trump’s proposed extension of the 2017 Tax Cuts and Jobs Act, coupled with further reductions in individual and corporate taxes, could leave more disposable income in consumers’ pockets, potentially boosting demand for subscription services like Netflix.

Read Also: Netflix Reaches 70 Million Users On Ad-Supported Plan, Boosts Live Sports Ads

As the leading global streaming platform, Netflix relies heavily on subscription revenue from both U.S. and international audiences. With the expectation that tax cuts may stimulate consumer confidence and spending in the U.S., Netflix could see more robust growth in its domestic market, where competition is fierce but streaming remains a staple in entertainment budgets.

Additionally, Trump’s plans for economic deregulation could help lower content acquisition and production costs domestically, enabling Netflix to invest more strategically in its original content portfolio.

There are also potential benefits to Netflix's international growth, as a stronger U.S. dollar, likely under Trump's anticipated economic policies, could lower costs when producing content abroad, a critical factor given Netflix’s heavy spending on foreign-language programming to expand its global market share.

Overall, it appears Netflix investors are betting that a Trump administration's focus on economic growth and consumer spending could create favorable conditions for the company's continued growth and profitability.

Read Also: October Inflation Rate Rises To 2.6% As Expected: December Interest Rate Cut Remains Uncertain

Is NFLX A Good Stock To Buy?

Wall Street analysts view Netflix on the whole as an Outperform, given the history of coverage over the past three months. Laurent Yoon from Bernstein in Netflix is the most optimistic, expecting a 24.8% rise in the stock in the coming year.

But looking at how the market as a whole thinks of the stock, you can reference historical price action for views on whether investors feel strongly about the stock one way or another. In the past 3 months, Netflix rose 23.29%, which indicates that opinion improved on the business and how attractive it is to own based on either its stock price, or underlying fundamentals, like revenue, which rose 15.02% over the past year.

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NFLX has a 52-week high of $832.85 and a 52-week low of $445.64.