Netflix Stock Receives Upgrade

Netflix’s stock surged past important support levels on Wednesday following a boost from Wall Street analysts.

Analyst Alan Gould from Loop Capital Markets upgraded Netflix from a hold rating to a buy, raising the price target from 1,150 to 1,350.

In the stock market today, Netflix shares climbed 2.3%, closing at 1,228.50. This rise indicates that Netflix has shown positive technical movement above its 50-day moving average, having dipped below that line the previous Thursday.

In a note to clients, Gould expressed a favorable outlook on Internet TV networks, citing strong user engagement and higher long-term profit margins.

He described the company’s subscriber engagement in the third quarter as “exceptional,” highlighting popular titles like “Squid Game,” “Wednesday,” and “KPOP Demon Hunters.”

Gould also mentioned that Netflix has an impressive lineup for the fourth quarter, including significant releases such as the final season of “The Diplomat,” a Christmas NFL doubleheader, “Frankenstein” by Guillermo Del Toro, “Trolls 2,” and the next installment of the “Knife Out” mystery series.

Current Status of Netflix Stock

With the ongoing streaming competition, particularly from entities like David Ellison’s PSKY, Gould believes that Netflix possesses a robust customer base, content scale, technical edge, and cash flow to sustain its growth and dominance.

There are rumors that Paramount Skydance may be preparing a bid related to Warner Bros Discovery, which could align Paramount+ and HBO Max within the same organization.

Gould commented that the market might be overly focused on competition from well-funded entities like Skydance.

Currently, Netflix stock is sitting on a 12-week flat base with purchase points at 1,341.15, and it features on the IBD leaderboard as well.