Netflix stock (NFLX) rose to a new high, increasing 13.6% in early trading on Wednesday. This happened after analysts praised the company’s earnings for the fourth quarter.
After the market opened, the stock reached just below $1,000 a share. Analysts quickly raised their price targets. Pivotal Research raised its target from $1,000 to $1,250.
In the fourth quarter, Netflix gained 18.9 million new users. This was the largest growth in subscribers ever for the company. Revenue and earnings also exceeded expectations.
Jefferies analyst James Heaney said, “Q4 results were near flawless.”
Netflix’s stock has gone up about 100% over the past year. The company also announced a $15 billion stock buyback and raised its revenue outlook for 2025.
Netflix increased the price of its plans. The ad-supported plan is now $7.99, while the ad-free Standard plan is $17.99, up from $15.49.
Netflix’s revenue for the fourth quarter was $10.25 billion, which was higher than expected.
Vocabulary List:
- Stock /stɒk/ (noun): The shares of a particular company or the value of those shares.
- Revenue /ˈrɛvənjuː/ (noun): The income generated from normal business operations.
- Analysts /ˈænəˌlɪsts/ (noun): Experts who analyze data and provide guidance or predictions based on that data.
- Earnings /ˈɜrnɪŋz/ (noun): The profit made by a company usually expressed in terms of net income.
- Subscribers /səbˈskraɪbərz/ (noun): Individuals or entities that enroll to receive services or products.
- Outlook /ˈaʊtlʊk/ (noun): A general attitude or prediction regarding future events or performance.
