Netflix's (NFLX) stock price has continued to do well this year, soaring to a record high of $720. It has jumped by over 348% from its lowest point in 2022, making it one of the best-performing media companies on Wall Street.
The relative resistance zone for Netflix stock sits right around 775.
These companies have plenty of growth runway left.
On Thursday, Direxion expanded its single-stock leveraged and inverse ETF selection with new funds that focus on Netflix and Taiwan Semiconductor Manufacturing Company Limited (TSMC). Staying Engaged With Streaming Looking at Netflix, the Direxion Daily Direxion Daily NFLX Bull 2X Shares (NFXL) aims to provide 200% of the daily performance of Netflix's common shares.
Stock split or not, Netflix stock could be worth considering.
Direxion has just expanded its roster of leveraged and inverse ETFs. This time, it targets two household names: Netflix Inc NFLX and Taiwan Semiconductor Manufacturing Co Ltd TSM.
Netflix (NFLX) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
Netflix stock has had a pretty good year, rising by almost 45% year-to-date as the company successfully navigated a brief subscriber decline post-Covid-19. This compares to rival Disney, which has gained about 7% over the same time frame.
Netflix's market cap already exceeds those of legendary companies like McDonald's, PepsiCo, and Walt Disney. Over the last decade, Netflix stock has averaged a compound annual growth rate (CAGR) of 27.5% -- more than double the return of the S&P 500.
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Netflix stock is up 45% YTD, and I see a 27% upside with a price target of $904 due to its discounted valuation and projected strong ARM growth. The ad-supported tier will drive customer acquisition at low entry points, while higher ad spend on the platform from advertisers should boost both top and bottom lines. In the meantime, its ad-free membership continues to show strength, especially with the superior content strategy of Netflix as it innovates across Series, Film, Games and Live Sports.
Netflix's strong business model, economies of scale, and differentiated content library are overlooked by many investors. Netflix's margin expansion potential and operational leverage are significant, with costs declining as a percentage of sales and no additional cost for incremental users. Advertising is an underappreciated growth driver, with Netflix building its own ad stack and already seeing substantial revenue from this segment.