Netflix Just Hit 302 Million Subscribers and a $410 Billion Valuation--And It's Only Getting Started

GuruFocus.com
01-23

Netflix (NASDAQ:NFLX) just dropped a bombshell report, smashing expectations with a record 19 million new subscribers and sending shares soaring over 10% this morning, hoovering around the all-time high. The company's strategic betslive sports, premium content, and a stronger ad-supported tierare paying off big time. Events like the Jake Paul vs. Mike Tyson boxing match and Christmas Day NFL games drew massive audiences, while Squid Game: Season 2 and other hits kept engagement high. Now with a staggering 302 million subscribers worldwide, Netflix isn't just leading the streaming warsit's rewriting the playbook.

    Wall Street is taking note. JPMorgan, Wedbush, and other top firms just bumped up their price targets, with some going as high as $1,175. Netflix is punching past a $410 billion market cap, making it more valuable than Disney (NYSE:DIS), Comcast (NASDAQ:CMCSA), Paramount (NASDAQ:PARA), and Warner Bros Discovery (NASDAQ:WBD). But what really stands out? Netflix is flexing pricing power, raising subscription costs without losing its grip on viewers. Meanwhile, its ad-supported tiernow driving over half of new sign-upsis quietly becoming a powerhouse revenue stream. With WWE Raw and exclusive FIFA Women's World Cup coverage on deck, Netflix is positioning itself as an even bigger force in live entertainment.

    The takeaway? Netflix isn't just growingit's dominating. While rivals scramble to cut costs, Netflix is proving it can keep scaling, raise prices, and still pull in more users. This isn't just a one-off earnings beat; it's a strategic shift that sets the stage for even bigger moves. With price hikes, a booming ad business, and a content pipeline packed with heavyweights, Netflix is making it clear: the best is yet to come.

    This article first appeared on GuruFocus.

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