Is Netflix a good stock to buy long term? (2024)

Is Netflix a good stock to buy long term?

Analysts certainly expect robust earnings growth. That's why Netflix stock's forward price-to-earnings ratio is just 32.5. Trading at just 32.5 times analysts' consensus forecast for Netflix's 2024 earnings per share, the stock looks like a hold today.

Is Netflix a good long term investment?

Is Netflix a good stock to buy? Netflix is a great stock for growth investors with a high risk tolerance. For more risk-averse investors, Netflix stock may not be the right choice due to its lofty valuation.

Is Netflix a good company to buy stock in?

Netflix, Inc. - Buy. Zacks' proprietary data indicates that Netflix, Inc. is currently rated as a Zacks Rank 1 and we are expecting an above average return from the NFLX shares relative to the market in the next few months.

Is Netflix a good stock to buy 2023?

But Netflix stock tumbled 51% in 2022 as subscriber growth stalled. That year, it reported two straight quarters of subscriber declines. Growth rebounded in 2023 thanks to the addition of a lower-cost, advertising-supported service as well as a crackdown on unpaid account sharing. In 2023, NFLX stock rose 65%.

How risky is Netflix stock?

“We see three potential risks. First, we believe 2024 revenue estimates may be a tad too high. Second, we see scope for 2025 content investments to exceed Street estimates. Third, we cannot rule out potential acquisitions,” wrote Bazinet in a research note.

What will Netflix be worth in 5 years?

Why is investing in Netflix a good idea?

All in all, based on analysts' forecasts, Netflix is expected to grow its revenue at a compound annual growth rate (CAGR) of 9% from 2021 to 2025. That's a faster rate than your average US firm. On the operating profit front, Netflix is expected to make $5 billion to $6 billion this year.

Is Netflix stock expected to grow?

Stock Price Forecast

The 42 analysts offering 12-month price forecasts for Netflix Inc have a median target of 582.50, with a high estimate of 700.00 and a low estimate of 335.00. The median estimate represents a +1.18% increase from the last price of 575.69.

Is Netflix stock expected to rise?

Stock Price Forecast

The 31 analysts with 12-month price forecasts for Netflix stock have an average target of 516.45, with a low estimate of 333 and a high estimate of 650. The average target predicts a decrease of -8.11% from the current stock price of 562.06.

Is Netflix a stable stock?

Netflix Fundamentals Over Recent Years

Netflix's financial position also appears stable, with the company holding about $8 billion in cash and short-term investments as of the most recent quarter, and its long-term debt standing at about $14 billion.

Is Netflix a good stock to buy 2024?

Valuing Netflix stock

But strong top-line momentum and an expanding operating margin could lead the company's earnings per share to soar in 2024. This would quickly bring down the stock's P/E to a more attractive level. Analysts certainly expect robust earnings growth.

Is Netflix going up in 2024?

Netflix prepared its users and investors for more price hikes to come in its quarterly investor letter. Netflix announced Tuesday it struck a deal to add 10 years of WWE's Raw to its content slate.

What will Netflix be worth in 2030?

Netflix stock price stood at $564.64

According to the latest long-term forecast, Netflix price will hit $900 by the end of 2024 and then $1000 by the middle of 2025. Netflix will rise to $1200 within the year of 2026, $1300 in 2027, $1600 in 2028, $1700 in 2029, $1800 in 2030 and $2000 in 2031.

How is Netflix doing financially?

In the fourth quarter of 2023, Netflix generated total revenue of nearly 8.83 billion U.S. dollars, up from about 7.9 billion in the corresponding quarter of 2022.

How can Netflix continue to grow?

By investing heavily in producing high-quality, exclusive shows and movies, Netflix has been able to attract a vast audience and retain existing subscribers. Their original content has become a major draw for viewers, setting them apart from traditional TV networks and other streaming services.

What stock to invest today?

What is the future of Netflix stock?

Stock Price Forecast

The 41 analysts offering 12-month price forecasts for Netflix Inc have a median target of 585.00, with a high estimate of 700.00 and a low estimate of 335.00.

How long until Netflix was profitable?

In 2003, Netflix was issued a patent by the U.S. Patent & Trademark Office to cover its subscription rental service and several extensions. Netflix posted its first profit in 2003, earning $6.5 million on revenues of $272 million; by 2004, profit had increased to $49 million on over $500 million in revenues.

What will Apple stock be worth in 2025?

Unless we see a serious global macro shock over the next couple of years, I expect Apple stock to trade higher than current levels by the end of 2025. Wall Street analysts likewise expect the stock to rise to $205.84 over the next 12 months, while the Street-high target price is $240.

Should I buy Netflix shares?

With its 3-star rating, we believe Netflix's stock is fairly valued compared with our long-term fair value estimate. We raised our fair value estimate for Netflix to $350 from $330, implying a price/earnings multiple of about 25 times our 2024 earnings estimate.

Is Netflix overvalued or undervalued?

In conclusion, the stock of Netflix (NASDAQ:NFLX) appears to be modestly undervalued. The company's financial condition is fair, and its profitability is strong. Its growth ranks better than 70.37% of 766 companies in the Media - Diversified industry.

Who holds the most Netflix stock?

Who owns Netflix? Netflix (NASDAQ: NFLX) is owned by 79.49% institutional shareholders, 6.41% Netflix insiders, and 14.11% retail investors. Rick Kimball is the largest individual Netflix shareholder, owning 8.01M shares representing 1.85% of the company. Rick Kimball's Netflix shares are currently valued at $4.52B.

Is Google stock a good buy right now?

GOOGL Stock Forecast FAQ

Alphabet Class A has 15.18% upside potential, based on the analysts' average price target. Is GOOGL a Buy, Sell or Hold? Alphabet Class A has a conensus rating of Strong Buy which is based on 29 buy ratings, 8 hold ratings and 0 sell ratings.

Is Amazon a good stock to buy right now?

AMZN Stock Forecast FAQ

Based on analyst ratings, Amazon's 12-month average price target is $208.45. Amazon has 21.33% upside potential, based on the analysts' average price target. Amazon has a conensus rating of Strong Buy which is based on 39 buy ratings, 0 hold ratings and 0 sell ratings.

Is Netflix a buy right now?

Investors who have a long-term mindset should consider starting a position in Netflix today. Should the business continue its pace of double-digit earnings gains over the next few years, the stock has a shot at outperforming the overall market.