Is Netflix a good stock to buy?
NFLX Stock Forecast FAQ
Fair Value Estimate for Netflix
With its 2-star rating, we believe Netflix's stock is overvalued compared with our long-term fair value estimate of $425, which implies a multiple of 25 times our 2024 earnings per share forecast.
Bank of America Raises Price Target, Citing Updated Full-Year Forecasts. Netflix updated its revenue growth expectations for the full 2024 year, saying that the company "expect[s] healthy revenue growth of 13% to 15%."
Citi rates Netflix at Neutral with a price target of $660 on the stock, which closed at $611.15 on Thursday. Netflix also said it sees 2024 revenue growth of 13% to 15%. At the midpoint of the range, that's a little below Wall Street's consensus forecast for 14.4% growth.
Netflix stock is overvalued says Benchmark, sees nearly 30% downside risk. Netflix (NASDAQ:NFLX) stock is overvalued. That's the opinion of analysts at Benchmark, who maintained a Sell rating and $440 price target on the streaming giant's shares in a note Thursday, heading into the company's earnings release.
If you had invested in Netflix ten years ago, you're probably feeling pretty good about your investment today. According to our calculations, a $1000 investment made in February 2014 would be worth $9,138.15, or a gain of 813.81%, as of February 12, 2024, and this return excludes dividends but includes price increases.
However, as noted, things have turned south since then. Check out the above chart and you'll see that if you invested $1,000 in NFLX stock 20 years ago – and did not sell at the peak – today you would be sitting on not quite $139,000. That's still a terrific return, of course.
The stock's total value must multiply by nearly 5 before reaching a $1 trillion market cap -- an ambitious goal that calls for time and patience. A more reasonable, yet consistently market-beating, estimate suggests Netflix could reach a $564 million market cap by 2030 and $1 trillion in 2035.
| Year | Prediction | Change |
|---|---|---|
| 2025 | $ 796.46 | 29.78% |
| 2026 | $ 1,033.66 | 68.43% |
| 2027 | $ 1,341.50 | 118.60% |
| 2028 | $ 1,741.02 | 183.70% |
| Year | Mid-Year | Year-End |
|---|---|---|
| 2024 | $657 | $836 |
| 2025 | $969 | $991 |
| 2026 | $992 | $1,141 |
| 2027 | $1,180 | $1,254 |
Who owns the most stock in Netflix?
According to the latest TipRanks data, approximately 46.37% of Netflix (NFLX) stock is held by retail investors. Who owns the most shares of Netflix (NFLX)? Vanguard owns the most shares of Netflix (NFLX).
Netflix remains head-and-shoulders above the streaming competition, and it has a key advantage over most of its rivals. It doesn't have a declining legacy media business it needs to manage, meaning it can invest all of its resources in streaming.
Netflix is in good financial shape. It ended 2023 with a net debt-to-EBITDA ratio under 1.0, holding about $7 billion in cash and $14.5 billion in total debt.
According to our calculations, a $1000 investment made in February 2014 would be worth $5,971.20, or a gain of 497.12%, as of February 5, 2024, and this return excludes dividends but includes price increases. Compare this to the S&P 500's rally of 178.17% and gold's return of 55.50% over the same time frame.
So far, Netflix remains one of the only profitable major streaming services, and investors seem to feel good about the company's prospects: Netflix's stock is up 36% compared to one year ago, while Disney's stock fell 10%, and Warner Bros.
On the stock market today, Netflix climbed 3.1% to close at 636.18. "Our positive investment view remains unchanged," Wlodarczak said in a client note. "Netflix has won the streaming wars and their continued strong subscriber/ARPU (average revenue per user) and free cash flow generation should drive the shares higher."
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On May 23, 2002, Netflix's stock began trading on the Nasdaq. Its stock was first sold at an initial public offering (IPO) price of $15 per share.
Market cap: $240.19 Billion
As of April 2024 Netflix has a market cap of $240.19 Billion. This makes Netflix the world's 42th most valuable company by market cap according to our data.
Current analyst estimates for 2024 are calling for earnings of $17.21 per share. That would give Netflix a valuation of a little over 35x forward full year earnings on a price-to-earnings basis.
What was the highest Netflix stock price ever?
The latest closing stock price for Netflix as of April 18, 2024 is 610.56. The all-time high Netflix stock closing price was 691.69 on November 17, 2021.
As of April 19, 2024, the consensus Amazon stock rating from 45 analysts compiled by MarketBeat was a 'Buy'. According to the latest analyst's price targets, the AMZN stock could reach $202.80 by April 2025.
As you can see below, Netflix had US$14.5b of debt, at December 2023, which is about the same as the year before.
Netflix has a market cap or net worth of $240.20 billion as of April 19, 2024. Its market cap has increased by 62.93% in one year.
| Year | Prediction | Change |
|---|---|---|
| 2025 | $ 235.48 | 28.45% |
| 2026 | $ 302.47 | 64.99% |
| 2027 | $ 388.52 | 111.94% |
| 2028 | $ 499.06 | 172.23% |
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