Why Netflix Stock Is Rising

Netflix Inc NFLX shares are trading higher by 2.21% to $933.58 during Wednesday’s session. JPMorgan analyst Doug Anmuth raised his price target on the streaming giant from $850 to $1,010.

What To Know: JPMorgan is raising their subscriber growth estimates for the fourth-quarter and beyond, driven by strong content, organic growth and an expanding ad-supported tier.

Data from Sensor Tower highlights a sharp improvement in global downloads and daily active users, fueled by popular events like the Jake Paul vs. Mike Tyson boxing match, the most streamed sporting event ever with 60 million households tuning in live.

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For the fourth-quarter, Netflix's subscriber additions are forecasted at 10 million, surpassing its third-quarter performance and near the low end of investor expectations exceeding 10 million. The platform's ad-supported tier is also gaining traction, with 70 million monthly active users, expected to grow to 120 million by the end of 2025.

JPMorgan additionally says live sports events, including upcoming Christmas Day NFL games, are enhancing ad monetization and subscriber engagement.

Per JPMorgan, revenue projections for 2025 suggest 15.3% growth on a currency-neutral basis, bolstered by pricing adjustments and ad-tier adoption. Operating income margins are anticipated to expand to 28.4%, with free cash flow reaching $9.3 billion. Content investments, including marquee titles like Squid Game and Stranger Things, are also expected to continue to drive engagement and retention.

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How To Buy NFLX Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Netflix’s case, it is in the Communication Services sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, NFLX has a 52-week high of $935.47 and a 52-week low of $459.20.