Netflix Stock: Netflix (NFLX) stock surged to an all-time high, surpassing $790 per share as tech stocks experienced a rally following Donald Trump’s victory in the presidential election. The streaming giant’s stock has seen a remarkable climb of more than 60% since the start of 2024, with a notable 10% gain in the past month, significantly outperforming the broader markets.
While the post-election tech rally provided a boost, Netflix’s growth story goes beyond the political landscape. The company’s successful crackdown on password sharing in May 2023 has paid off, adding more than 50 million paying subscribers to its platform. As a result, Netflix is on track to achieve full-year operating margins of 27%, with potential for margins similar to traditional broadcast networks, which historically range between 40% and 50%.
In addition to subscriber growth, Netflix has posted impressive financial results. The company reported approximately $6.9 billion in net income in the first three quarters of 2024, a figure that far outpaces its competitors. While other streaming companies like Disney (DIS) and Paramount Global (PARA) have recently reported profits, Netflix continues to dominate the industry. Comcast (CMCSA), meanwhile, is considering spinning off its cable networks, further highlighting the shifting dynamics of the media sector.
“Netflix is clearly running away with the ball, and the media-based streaming companies are struggling to even get on the field,” said Barton Crockett, managing director at Rosenblatt Securities.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Please consult a qualified financial advisor or conduct your own research before making investment decisions.
