Can Netflix Hit a New All-Time High in 2024?

Target Practice

It's been a good week for fans of analysts jacking up Netflix price targets. Jason Helfstein at Oppenheimer boosted his price goal on the shares from $615 to $725 on Monday, encouraged by recent developments for the company. He sees the potential for improving monetization for its discounted ad-supported tier. Furthermore, the crackdown on password-sharing has given Netflix an additional revenue stream now that it's allowing members to pay more to add a friend or relative that isn't living in the same place to their account. A subscription rate increase in October should also help in boosting average revenue per member 4% this year, a metric that rose just 2.5% for domestic users in 2023.

On Tuesday, it was Jefferies analyst Andrew Uerkwitz taking his turn to put out an encouraging note. He is lifting his price target from $580 to $700. Uerkwitz is adjusting his subscriber estimates higher given the weak competitive landscape and healthy engagement with the password-sharing measures introduced last year.

Waiting for a Hollywood Ending

Investors getting giddy after a well-received financial update earlier this year isn't necessarily a permanent fixture. The last time the stock traded that high -- roughly 24 months earlier -- it plummeted 70% over the course of the next four months. Momentum is a blessing and not a birthright.

Netflix is in a great spot. Subscribers aren't balking at higher price points and the password-sharing crackdown because they know it's the one major service that isn't cutting corners. There are now more than 260 million paid members worldwide, and the company gained 13.1 million viewers in just the last three months of 2023.

Netflix is poised for further success. The competition is getting weaker. It's getting stronger. With the market expecting another year of double-digit growth, Netflix is well on its way to a new all-time high in 2024.