Netflix Stock Is Rising Wednesday: What's Going On?
Portfolio Pulse from Adam Eckert
Netflix Inc (NASDAQ:NFLX) stock is rising after reporting Q4 financial results. Revenue increased 12.5% YoY to $8.83 billion, surpassing estimates of $8.72 billion. Earnings per share were $2.11, missing the $2.21 estimate. Paid net adds were 13.12 million, with total subscribers at 260.28 million, a 12.8% increase YoY. Netflix plans to expand its ad-supported tier and expects Q1 revenue of $9.24 billion and earnings of $4.49 per share, with a full-year 2024 operating margin target of 24%. Keybanc and Wedbush raised their price targets, while Deutsche Bank downgraded the stock but increased its price target.
January 24, 2024 | 1:51 pm
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POSITIVE IMPACT
Netflix's Q4 results showed strong revenue growth and subscriber additions, despite a slight miss on EPS. The company's positive outlook and raised margin targets for FY2024, along with mixed analyst ratings, are driving the stock price up.
The positive reaction in Netflix's stock price is likely due to the company's revenue beat, significant year-over-year growth in subscribers, and optimistic future guidance. The mixed analyst ratings with overall raised price targets suggest confidence in the company's growth trajectory, despite the slight earnings miss. The stock's significant rise on the day of the announcement indicates strong investor sentiment.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100