Could Netflix stock price hit an all-time high in 2024?

Those who have invested binge have had good results. netflix (NFL -0.13%). The stock price more than doubled compared to the beginning of last year. Even in 2024 (where many of last year’s winners turned out to be dead), the leading premium video service provider’s stock price outperformed the market, up 26% year-on-year.

Netflix stock hit a 52-week high in January after reporting explosive fourth-quarter earnings, but that’s not all. Netflix has hit 52-week highs in each of the past five months (including last week to keep its March streak alive). However, there is still a lot of upside left before reaching the all-time high of $700.99, which was reached in November 2021. Will we really be able to reach it? Can we get there? this year? Let’s take a closer look at Netflix and its potential to hit new highs in 2024.

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It’s been a good week for fans, with analysts raising their price targets for Netflix. Jason Helfstein Oppenheimer Buoyed by the company’s recent developments, he raised his stock price target on Monday from $615 to $725. He saw the potential to improve monetization of the discounted, ad-supported tier. Moreover, the crackdown on password sharing has given Netflix an additional revenue stream as members can now pay more to add friends or relatives who don’t live in the same place to their accounts. The October subscription rate increase will help increase average revenue per member by 4% this year. This represents only a 2.5% increase for domestic users in 2023.

On Tuesday Jeffries Analyst Andrew Uerkwitz took his turn offering some encouraging words. He is raising his price target from $580 to $700. Uerkwitz is adjusting its subscriber estimates higher to account for weak competition and healthy participation in password-sharing measures introduced last year.

Both analysts naturally remain optimistic about Netflix. Meeting the Oppenheimer target and hitting the Jefferies target later this year would be enough to hit a new all-time high. that ~can do wake up.

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The giddy feeling among investors following a well-received financial update earlier this year is not necessarily permanent. The last time the stock was trading at such a high level (about 24 months ago), the stock plunged 70% over the next four months. Drive is a blessing, not a birthright.

Hopefully this time will be different. First of all, Netflix’s biggest advantage right now is that it continues to be highly profitable. It generated free cash flow of $6.9 billion in 2023. This is notable because the same cannot be said for most of its major media competitors. Competitors are cutting content costs to meet their financial goals. Netflix isn’t shy about cutting big checks for high-profile movies or shows. There are also serious discussions taking place this year about live sports and sports entertainment through WWE’s distribution deals. raw There are also streaming rights to this summer’s fight between Mike Tyson and Jake Paul.

Netflix is ​​in a good position. Subscribers don’t mind higher prices and crackdowns on password sharing. Because I know it’s the only major service that doesn’t save money. There are currently more than 260 million paid members worldwide, and the company attracted 13.1 million viewers in the last three months of 2023.

Netflix is ​​poised for even greater success. Competition is becoming weaker. It’s getting stronger. It’s always been elite among streaming service stocks, and with the market expecting another year of double-digit growth on both ends of the income statement, we’re lucky Netflix can’t hit an all-time high in 2024. The current stock price is only 15% away from getting there. Another strong quarter or two, or a rival or two throwing in the towel, should be reached before the end of the year.