Netflix (NFLX -0.74%) dazzled investors with its Q4 2024 earnings report on Jan. 21. The streaming leader blew past expectations for subscriber growth, posting record additions of 18.9 million, well above the analyst consensus of 9.8 million. Subscriber growth was also broad-based with the company adding at least 4 million subscribers in all four of its regions, showing its popularity around the world.

Growth was driven by content, including Netflix's successful experiment with live events like the Jake Paul vs. Mike Tyson fight and two NFL games streamed on Christmas Day.

Additionally, content like Squid Game season 2 has also gotten high ratings, and the company noted "improved product/market fit" driving the quarter's subscriber growth. Not surprisingly, Wall Street was impressed with the report, and one firm just lifted its rating on the stock.

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Wolfe Research upgrades Netflix

Wolfe Research hiked its rating on Netflix from peer perform to outperform with a price target of $1,100, according to media reports. That represents 15% upside beyond the stock's 10% post-earnings pop on Jan. 22.

Wolfe argued the company's superior scale is driving accelerating returns and expanding its addressable market. It's hard to argue with that synopsis as investors had left Netflix for dead less than three years ago after it reported back-to-back quarters of subscriber losses.

Now, Netflix is growing briskly at a time when its legacy media peers are struggling with their own subscriber bases and profitability, showing its significant competitive advantage.

Is Netflix a buy?

As Netflix taps into new revenue streams like advertising and live events, the business looks as strong as ever, especially compared to the competition. The company also announced a price hike, showing confidence in demand and further expanding its operating margins.

Netflix might have seemed like a mature, low-growth business a few years ago, but the company is back in full stride. Buying the stock now looks like a smart move.