Shares of streaming giant Netflix Inc (NASDAQ: NFLX) have been on a tear this year, making 2024 one for the history books. The stock has surged almost 100% since January and was hitting fresh all-time highs as recently as the end of November. As we head into the last couple of weeks of the year, all signs point to the streaming giant cruising toward even greater heights in 2025.
There are several reasons investors should be getting excited about where this stock will go in the coming months, with $1,000 looking increasingly within reach. Let's jump in and take a look at why this stock deserves a spot on your Christmas wish list.
Netflix’s Fundamental Performance Continues to Impress Investors
To start with, let's take a look at Netflix's fundamental performance, which has been nothing short of stellar. The company smashed analyst expectations with its latest earnings report in October, adding to a strong track record that looks set to continue into 2025. Both EPS and revenue exceeded forecasts, with the latter climbing more than 15% year-over-year to hit a record.
With holiday releases and increased subscriber activity typically driving a bumper Q4, this is always an interesting time to consider getting involved. The company's recent focus on monetizing password sharing and expanding its ad-supported tiers has begun to show results, giving Netflix a solid foundation for further growth. Investors should look for the company to continue performing well and the stock to continue rallying.
Bullish Analyst Updates Signal Optimism for Netflix Stock
Building on the run of solid fundamental performance, several analysts are extremely bullish on Netflix's prospects, and investors should be taking note. This week alone, the team at Evercore ISI reiterated their Outperform rating on Netflix shares, along with a $950 price target.
This built on a similarly bullish stance from Pivotal Research, who issued a street-high $1,100 price target at the end of November last month. From where the stock closed last night, that's pointing to a targeted upside of more than 20%. If Netflix shares hit that in the coming weeks, they'd also be at fresh all-time highs and cruising into blue-sky territory.
Much of Pivotal's bullishness stems from Netflix's recent foray into live events, highlighted by the Mike Tyson and Jake Paul fight. Streaming to 65 million households, the event showcased Netflix's ability to draw massive audiences, opening the door for similar ventures in the future.
According to Pivotal, Netflix is well-positioned to capitalize on the live event format, with increased subscriber and average revenue per user forecasts supporting their target. Don't be surprised if we see similarly bullish outlooks in the coming weeks.
RSI Pullback to 60-70 Could Offer Better Entry Point for Cautious Investors
While the bulls dominate the conversation of where Netflix shares are likely to trend, it's worth acknowledging some of the more cautious tones from analysts. Canaccord Genuity Group, for instance, reiterated its Hold rating on the stock this week. However, even they upped their price target to $940, which remains well above last month's high of around $905.
There's also the matter of Netflix's technical indicators. With all the recent gains, the stock's RSI is currently above 70, indicating overbought conditions, though it's down from the frothy 83 levels seen earlier in the quarter. The more cautious investor might want to wait until the RSI drops back towards the 60-70 level, but if you're getting involved on the long side, you kind of want a warm RSI, as it confirms momentum is very much alive.
Getting Involved: Netflix Stock Poised for More Gains
All things considered, Netflix is a tech stock that's worth watching closely, especially if it continues setting higher highs in the weeks ahead. With the benchmark S&P 500 index currently hitting all-time highs and the Fed cutting interest rates, the broader risk-on sentiment is very much on Netflix's side. Investors should be looking at further gains heading into the rest of the year, with a $1,000 price tag looking quite likely before too long.
