Streaming giant Netflix (NASDAQ:NFLX) delivered strong sales performance in the fourth quarter of 2022, with support from 7.7 million net subscriber additions during the quarter. The additions came way above the company’s target of 4.5 million. Interestingly, Netflix’s upbeat results would not have shocked users who kept a keen eye on the company’s website traffic, using TipRanks’ Website Traffic Tool.
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This tool offers insights into customer interest in a company’s products. A rise in website traffic can indicate increased demand for the company’s products, which often predicts a strong earnings report. In contrast, a decline in traffic trends can suggest weak demand and hint at downbeat earnings.
According to the tool, the Netflix website recorded a 14.21% rise in global visits in Q4, compared to the previous quarter. The increase in website visits indicates that Netflix’s business witnessed strong demand. It is likely that Netflix’s efforts to provide strong content during the quarter and the new ad-supported tier launched in November were successful.
Is NFLX a Buy Stock?
On TipRanks, Netflix has a Moderate Buy consensus rating, based on 17 Buys, 14 Holds, and three Sells. The average NFLX price target of $347.29 implies upside potential of 1.4%. Shares have gained about 57% in the past six months.
Ending Thoughts
The company is optimistic about revenue growth prospects in the near term. This is based on the expectations of subscriber growth on account of password-sharing restrictions and an affordable ad-supported plan. Moreover, a sound financial position, strong brand power, and growth initiatives make Netflix an attractive option for investors to consider.
Furthermore, vigilance on website trends indicated by TipRanks’ Website Traffic Tool could guide investors in making a prudent investment decision.
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