internet tv network Netflix In addition to underappreciated user growth, NFLX is also likely to increase its revenue per subscriber over the next year, according to Wall Street analysts. Netflix stock rose on Monday.
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Oppenheimer analyst Jason Helfstein on Sunday reiterated his outperform rating on Netflix stock and raised his price target from 615 to 725.
In today’s stock market morning trading, Netflix’s stock price fell slightly to 603.46.
Helfstein said in a note to clients that Netflix’s average revenue per member should benefit from improved ad monetization, subscribers paying additional membership fees and regional price increases. .
He estimated that Netflix’s average revenue per member will grow 4% in 2024, helped by price increases announced in October in the U.S., U.K. and France.
Netflix stock is on three IBD lists
Meanwhile, subscriber growth could exceed Wall Street expectations by 31% over the next three years, Helfstein said.
He said, “We see a path to subscriber acquisition over the next three years that could exceed street expectations by 17 million people.” He said current estimates assume a significant slowdown in paid sharing and advertising tier subscriber numbers, despite bullish third-party engagement data.
Meanwhile, competition from other streaming services has eased as competitors prioritize profitability.Those competitors include: Walt Disney(DIS) Disney+, warner bros discovery(WBD) Max, comcast(CMCSA) Peacock and paramount global(PARA) Paramount+.
Netflix stock hit a two-year high of 624.42 on March 4th. Netflix stock has increased 25% since the beginning of the year.
Netflix stock appears on three IBD stock lists: IBD 50, Big Cap 20, and Stock Spotlight.
Follow Patrick Seitz on X (formerly Twitter). @IBD_PSeitz Check out more articles on consumer technology, software, and semiconductor stocks here.
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