With a market cap of $485.2 billion, Netflix, Inc. (NFLX) is a provider of entertainment services that acquires, licenses, and produces content, including original programming. It provides paid memberships in over 190 countries and offers television (TV) series, documentaries, feature films, and games across various genres and languages.
Shares of the entertainment services giant have significantly outperformed the broader market over the past 52 weeks. NFLX has soared 86.3% over this period, while the broader S&P 500 Index ($SPX) has gained 8.6%. Moreover, shares of NFLX are up 27.9% on a YTD basis, compared to SPX’s 3.8% dip.
More Top Stocks Daily: Go behind Wall Street’s hottest headlines with Barchart’s Active Investor newsletter.
Zooming in further, the Los Gatos, California-based company has also outpaced the Communication Services Select Sector SPDR ETF Fund’s (XLC) nearly 19% rise over the past 52 weeks and marginal return on a YTD basis.
Netflix’s stock rose 1.5% following its Q1 2025 results on Apr. 17. Revenue for the quarter increased 12.5% year-over-year to $10.5 billion, driven by solid growth in subscription and advertising revenue. Operating income rose 27.1% from the year-ago quarter to $2.9 billion, with an operating margin of 31.7%. Its EPS came in at $6.61, up 25.2% from the prior-year quarter.
Additionally, for fiscal 2025, the company expects revenue between $43.5 billion and $44.5 billion, reflecting anticipated member growth, higher subscription prices, and approximately double the advertising revenue.
For the fiscal year ending in December 2025, analysts expect NFLX’s EPS to increase 27.7% year-over-year to $25.33. The company's earnings surprise history is strong. It beat the consensus estimates in the last four quarters.
Among the 45 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 30 “Strong Buy” ratings, two “Moderate Buys,” and 13 “Holds.”
This configuration is more bullish than three months ago, with 27 “Strong Buy” ratings on the stock.
On Apr. 21, Evercore ISI raised NFLX's price target to $1,150 while maintaining an “Outperform” rating.
As of writing, Netflix is trading above the mean price target of $1,088.27. The Street-high price target of $1,514 implies a potential upside of a staggering 32.8% from the current price levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart
- ‘I Think It's Led To Bad Things’: Warren Buffett Says Tariffs are Causing Harm and ‘We Want a Prosperous World’
- 1 Stock to Buy Hand Over Fist as ‘Risk On’ Sentiment Gains Momentum
- Option Volatility And Earnings Report For May 12 - 16
- Stock Index Futures Rally as U.S. and China Agree on Temporary Tariff Cuts, Inflation Data and Powell’s Remarks Awaited
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
