On Wednesday, Piper Sandler adjusted its outlook on Netflix (NASDAQ:NFLX) stock, increasing the price target to $1,100 from the prior $950 while maintaining an Overweight rating. The revision follows Netflix's impressive fourth-quarter results, which surpassed expectations with 19 million paid net additions, outpacing consensus estimates. According to InvestingPro data, Netflix shares have surged 79% over the past year, with the stock currently trading at $869.68.
The company also updated its full-year 2025 revenue and operating margin forecasts, showing confidence despite significant foreign exchange headwinds. Piper Sandler expressed admiration for Netflix's consistent ability to exceed expectations, highlighting the platform's scale and execution. The streaming giant maintains a strong financial position, with InvestingPro analysis showing revenue growth of 14.8% and an overall financial health score of "GREAT."
Key insights from Netflix's earnings call were spotlighted by Piper Sandler, emphasizing two primary factors contributing to the company's momentum. Firstly, subscriber growth is expected to benefit from a robust content lineup, including the introduction of live content. Secondly, the expansion of Netflix's advertising tier is anticipated to continue its upward trajectory.
In response to these positive trends, Netflix has implemented price increases in various global markets, including the United States. Piper Sandler sees the upcoming content slate as a driver for user engagement throughout the year. The firm reaffirmed its Overweight rating on Netflix shares and cited the platform as its preferred large-cap investment option.
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