Netflix just dropped the 🎤 on all the doubters who say the streaming giant’s stock was going to hit the skids after a 340% rally.
$NFLX jumped after another handsome quarter. And now the company is gearing up for its next big play: hiking subscription prices, ramping up ads and rolling out new shows, including a new season of the runaway hit, Squid Game.
Stock Games
- After more than quadrupling over the past two years, analysts see the shares rising just another 0.8% in the next 12 months. But remember, those forecasts were issued before Netflix’s super third-quarter numbers on Thursday.
- Netflix itself sees sales growth of 11% to 14% next year.
Bank of America analysts are saying Netflix’s ad game is about to blow up, with ad revenue set to double by 2025. It will also be the main moneymaker over the coming years. They see the stock going up another 16% in the next year. So, yeah, the hype is real, and the gains might just keep coming. (FOMO much yet?)
Coming soon
There’s no doubt that subscriptions growth has slowed even after Netflix’ password-sharing crackdown. The company is also trying to balance that with price hikes. (Can someone build that streaming inflation index, please?)
And though the content wheel is churning again after strikes crippled Hollywood most of last year, Netflix is light on sports programming. That evergreen and high-audience bucket is coming more and more onto streaming. Disney, under fire from investors, and deep-pocketed Amazon Prime Video are making big splashes in this segment.
So, grab that popcorn.
