As a leading player in the global online video streaming market, the financial performance of Netflix offers key insights into consumer trends in the entertainment industry. With an increasing number of competitors like Disney+, HBO Max, Apple TV+ and others, investors tend to focus on subscriber numbers and future growth forecasts the most.
Learn more about Netflix’s third-quarter 2024 performance and what analysts are forecasting for the stock.
Stock: | Netflix Inc. |
Symbol for Invest.MT5 Account: | NFLX |
Date of Idea: | 22 October 2024 |
Time Line: | 1 – 6 months |
Entry Level: | $750.00 |
Target Level: | $925.00 |
Position Size for Invest.MT5 Account: | Max 5% |
Risk: | High |
- The Invest.MT5 account allows you to buy real stocks and shares from some of the largest stock exchanges in the world.
All trading is high risk and you can lose more than you risk on a trade. Never invest more than you can afford to lose, as some trades will lose and some trades will win. Start small to understand your own risk tolerance levels or practice on a demo account first to build your knowledge before investing.
Netflix Q3 2024 Performance
Here are some of the key highlights from the third-quarter 2024 earnings report from Netflix:
- Earnings per share of $5.40 vs $5.12 expected
- Revenue of $9.83 billion vs $9.77 billion expected
- Net income of $2.36 billion up from $1.68 billion a year earlier
- Revenue up 15% from a year earlier
- Paid memberships of 282.70 million vs 282.15 million expected
- Ad-tier membership up 35% quarter over quarter
Netflix beat analyst estimates on most financial performance metrics. Its paid memberships only just beat analyst expectations, but the highlight of the earnings report was the 35% growth in its ad-tier membership.
It noted that its growth was down to some of its hit shows like “Nobody Wants This,” “Emily in Paris” and “Cobra Kai” among others. The fourth quarter will be closely watched by investors as Netflix will start to feature live sports events including a boxing match between Jake Paul and Mike Tyson, as well as two National Football League (NFL) games.
The streaming giant forecasts revenue for the full year between $43 billion and $44 billion due to new seasons of popular series, live sports and new initiatives such as gaming. However, one issue that has investors worried is the slowing growth of subscriber numbers which has dropped over the past three quarters.
Even though Netflix’s stock price is at a record high, more analysts now have a hold and sell rating on the stock, as highlighted below.
Netflix Stock Forecast – What do the Analysts Say?
According to 36 analysts polled by TipRanks for an Netflix stock forecast in the past 3 months, there are currently 24 buy, 10 hold and 2 sell ratings on the stock. The highest price level for a Netflix stock forecast is $925.00 with the lowest price target at $550.00.
The average price target for a Netflix stock forecast is $778.54.
An Example Trading Idea for the Netflix Stock Price
An example trading idea for the Netflix share price could be as follows:
- Buy the stock on a pullback to $750.00 to allow for volatility.
- Target just below the highest analyst price target of $925.00.
- Keep your risk small at a maximum of 5% of your total account.
- Time Line = 1 – 6 months
- If you buy 10 Netflix shares:
- If target is reached = $1,750.00 potential profit [($925.00 – $750.00) * 10 shares].
Remember that markets go up and down and it is unlikely the share price will move up in a straight line. In fact, it may even go much further down before it rises, especially due to the slowdown in Netflix’s subscriber growth numbers and the increasing sell ratings on the stock.
Be sure to exercise good risk management and always know how much you could potentially lose on a trade and the risks involved, as well as the costs.
With the Admirals Invest.MT5 account you can buy and sell US stocks with a commission from $0.02 per share. This means buying 10 shares in Netflix stock would result in a commission of $0.20 ($0.02 * 10 shares) for executing a per-side transaction.
However, there is a low minimum transaction fee of $1. So, the example trading idea above would result in a commission of just $1 overall.
How to Buy Netflix Stock in 4 Steps
With Admirals, you can buy shares with a commission of just $0.02 per share and a low minimum commission of just $1 on US stocks.
- Open an account with Admirals to access the dashboard.
- Click on Trade or Invest on one of your live or demo accounts to open the web platform.
- Search for your stock in the search window at the top.
- Input your entry, stop-loss and take profit levels in the trading ticket.
Click on the banner below to trade Netflix stock today ▼▼▼
Do You See the Netflix Stock Price Moving Differently?
Remember that all analytics and trading ideas are based on the personal view and experience of the author.
If you believe there is a higher chance Netflix share price will move lower, then you can also trade short from a CFD (Contracts for Difference) trading account which Admirals also provide.
The Trade.MT5 and Trade.MT4 account allows you to speculate on the price direction of stocks and shares using CFDs.
This means you can trade long and short to potentially profit from rising and falling stock prices.
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- The Analysis is prepared by an independent analyst Jitanchandra Solanki, Freelance Contributor (hereinafter “Author”) based on personal estimations.
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