There are some who remember that Netflix (NASDAQ:NFLX) started out life as a DVD-by-mail operation. It was a high point of the day for many, myself included, to go out to the mailbox and find the little red envelope waiting for me complete with a new DVD. But the video streamer has grown substantially beyond that, as recent reports note. Investors are pleased with the progress so far, and Netflix shares are up over 1.5% in Friday afternoon’s trading.
Netflix certainly stuck to its guns on “flicks.” It’s got several of the biggest catalog titles out there, and every year, it seems to have at least one Oscar candidate show up. It may not always win, but it at least shows up, and that’s saying something from a platform that basically wasn’t there even 20 years ago. But Netflix has added a lot of new shows as well, some much better than others, depending on your point of view. Its evolution is also continuing; keep in mind its recent expansions into sports streaming. Previously, it added wrestling, and now, it’s bringing in entire NFL Christmas Day games.
Audiences Are Receptive
Netflix recently noted that its ad-supported plan recently cleared 40 million users. In fact, ad-supported tier subscriptions are basically two out of every five sign-ups right now where available, which means one big potential pool of wins for marketers. And, with Netflix set to release fan-favorite anime “Sakamoto Days” by the end of this year—anime has proven brisk territory for Netflix, as the live-action “One Piece” adaptation is doing better than many expected—that’s only going to prove more fodder for Netflix to build a consumer base around.
Is Netflix a Buy, Hold, or Sell?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on NFLX stock based on 23 Buys, 12 Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 67.01% rally in its share price over the past year, the average NFLX price target of $656.20 per share implies 5.71% upside potential.
