The stock of Netflix (NFLX) is up 13% in after hours trading on news that the streaming giant added a record 18.9 million new subscribers in the fourth-quarter of 2024.
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The record subscriptions taken out during the final quarter of last year have pushed Netflix’s number of paid memberships worldwide to 301.63 million. That exceeds the total of 290.90 million that was expected on Wall Street.
The subscription numbers were included in the California-based company’s Q4 2024 financial results. Netflix reported earnings per share (EPS) of $4.27, which topped the $4.21 consensus forecast of analysts. Revenue in the period totaled $10.25 billion, which was ahead of a consensus estimate of $10.11 billion.
Live Sports and Returning Favorites
Netflix attributed the strong results to the success of its live sporting events and the return of popular television programs such as “Squid Game,” which helped drive the record number of new subscribers to the streaming platform. Netflix broadcast two live NFL football games on Christmas Day in December.
In its earnings release, Netflix announced plans to raise prices. The company said that it will increase prices for most streaming plans in the U.S., Canada, Portugal and Argentina. In the U.S., the basic service with advertisements will increase by $1 a month to $7.99, a 14% price hike. The premium streaming package without ads rises to $24.99 per month, a 9% increase.
NFLX stock has risen 79% in the last 12 months.
Is NFLX Stock a Buy?
The stock of Netflix has a consensus Moderate Buy rating among 30 Wall Street analysts. That rating is based on 21 Buy, seven Hold, and two Sell recommendations assigned in the last three months. The average NFLX price target of $951.60 implies 9.42% upside from current levels.
