Netflix Stock Hits Record High as Analysts Call Streamer ‘Top Pick’ After Blowout Earnings

Netflix (NFLX) shares surged to a record high Friday, a day after the streaming giant’s third-quarter earnings beat expectations, with several analysts raising their price targets for the stock.

Bank of America boosted its price target to $800 from $740, calling Netflix “one of the best positioned companies within media,” with multiple growth drivers including its “burgeoning ad business.” Netflix’s ad-supported membership grew 35% quarter-over-quarter, and the company said it expects to launch an ad tech platform in 2025.

Analysts at JPMorgan lifted their price target even higher, to $850 from $750, and called Netflix a “top pick,” citing its “strong leadership position” with a “virtuous circle of strong subscriber growth, more revenue, and growing profit.”

Including Bank of America, about three-quarters of the 20 analysts covering Netflix tracked by Visible Alpha held a “buy” or equivalent rating for the stock as of Friday, though their average price target at $777.21 was not far off from Friday’s closing price.

Shares of Netflix jumped over 11% to close at $763.89 Friday and have gained nearly 57% since the start of the year.

Netflix Says Its Content Volume Is Picking Up Again, Despite Strike Delays

Netflix’s gains came despite some programming challenges, calling it “patchier than normal,” due to the lingering impacts of actors and writers strikes in 2023, and said “volume has picked up again.”

Netflix said it delivered several hits in the quarter, with “The Perfect Couple” starring Nicole Kidman and Liev Schreiber drawing 65.2 million views, while romantic comedy “Nobody Wants This” with Kristen Bell and Adam Brody drew 37 million.

UPDATE—Oct. 18, 2024: This article has been updated to reflect more recent share price information.