Shares of Netflix (NFLX.O) surged 13% to a record high on Wednesday, bolstered by the streaming giant’s strategic dive into sports, which contributed to a massive 18.9 million new subscribers in the holiday quarter. This milestone propelled Netflix’s global subscriber base past 300 million, further solidifying its dominance in the streaming industry.
On Tuesday, Netflix announced price hikes in key markets like the U.S., aiming to drive revenue while shifting focus from subscriber growth to performance metrics such as sales. Analysts, including Bernstein’s Laurent Yoon, lauded the results, with Yoon describing the subscriber growth as “far beyond even the most unreasonable subscriber bogey.”
Netflix’s current market value surpasses the combined valuations of major competitors Disney, Comcast, Paramount, and Warner Bros Discovery. The stock, which climbed to an intraday high of $988, could potentially pave the way for a stock split.
Last year, Netflix’s stock skyrocketed by over 80%, driven by its foray into live sports, including the historic Nov. 15 Jake Paul vs. Mike Tyson boxing match and NFL games on Christmas Day featuring Beyoncé’s halftime performance. The boxing match, now the most-streamed sporting event ever, also marked a record-breaking day for sign-ups.
Analysts predict Netflix’s move into special-event sports content will attract advertisers eager to reach large audiences. The company has already secured U.S. broadcasting rights for the 2027 and 2031 FIFA Women’s World Cups, with more bids for major sports rights likely on the horizon.
Despite the subscriber boom, revenue growth was modest, rising 16%—only $100 million above estimates. Analysts attribute this to subscriber growth in lower ARPU regions and increased adoption of the ad-supported tier. However, upcoming price hikes are expected to bolster future revenue.
In 2025, Netflix plans to release new seasons of hit series like Stranger Things and Wednesday while expanding its sports content with live broadcasts such as WWE RAW. At least 24 analysts raised their price targets, pushing the median target to $1,025.
Source: Swifteradio.com
