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Netflix Stock Hits New Heights After Spectacular Earnings Report
Netflix stock flirted with the $1,000 mark Wednesday, hitting all-time highs in the wake of the company's stellar earnings report.
It’s a dramatic turnaround from just two-and-a-half years ago, when shares slipped below $180 after the company reported subscriber declines and appeared to be vulnerable to new streaming competitors. Pivotal Research Group’s Jeffrey Wlodarczak upped his 12-month price target for Netflix to $1,250 and called the quarterly report a “blowout.” He pointed to opportunities to acquire assets (even floating scenarios like Sony Pictures Entertainment or Formula 1) and noted the strength of the company’s average revenue per user or ARPU. “The key for Netflix going forward is to press their advantages and keep the subscriber/ARPU flywheel going,” he wrote in a note to clients, “because the larger they get the more leverage they have over their peers/content creators, the better their product gets (allowing them to drive subscriber/ARPU growth), the more cash they have to spend on compelling content and the bigger the moat grows around their core business model.”
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