Netflix (NASDAQ:NFLX) has been hitting on all cylinders of late, offering popular movies and television shows along with massive sporting and other live events that are drawing viewers left and right.
How would this be reflected in Netflix’s Q4 2024 print earlier this week? Netflix did not disappoint.
Projected to gain slightly over 9 million customers in Q4 2024, NFLX more than doubled these expectations by adding 18.91 million subscribers. The company has now passed more than 300 million global subscribers.
Revenues also gained steam, with the $10.25 billion reported for Q4 2024 representing year-over-year growth of 16%. In addition, the company enjoyed robust bottom-line growth as well, with its $4.27 of EPS representing an increase of more than 100% year-over-year.
The market was quick to reward NFLX for its stellar performance, and shares shot up by double-digits following its Q4 2024 report. All told, stock prices are up almost 100% over the past year.
Top investor Michael Wiggins De Oliveira is confident these gains will continue into 2025, and beyond.
“Netflix’s ability to consistently deliver positive results, expand into new verticals like live sports, and return capital to shareholders through buybacks makes it a top investment opportunity,” states the 5-star investor, who sits in the top 3% of TipRanks’ stock pros.
Wiggins De Oliveira cites Netflix’s success in attracting and retaining customers with prestige programming. The investor notes that this includes both scripted content and live sports, including the American broadcast rights for the Women’s World Cup soccer tournament.
Beyond the content, Wiggins De Oliveira points to Netflix’s growing free cash flow. The investor states that these funds should allow the company to return capital to shareholders via share repurchases, which consisted of about 1.5% of the company’s market cap in 2024.
“We don’t know exactly how aggressive Netflix intends to be, but we do know that Netflix notes that there’s a further 4.6% coming back to shareholders with time via repurchases,” says Wiggins De Oliveira.
Calling Netflix a “very strong opportunity,” the investor is therefore rating NFLX a Buy. (To watch Wiggins De Oliveira’s track record, click here)
Wall Street also seems to agree NFLX is a promising opportunity. With 20 Buy, 7 Hold, and 2 Sell ratings, NFLX enjoys a consensus Moderate Buy rating. Its 12-month average price target of $986.46 would yield modest gains of ~3.4%. (See NFLX stock forecast)
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.
Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
Questions or Comments about the article? Write to editor@tipranks.com