MW Netflix wants to be a $1 trillion company. Earnings show why that's a reasonable goal.

By Steve Gelsi

Pivotal Research hikes its Netflix price target and calls the company a winner in the global streaming war

Netflix's internal goal of reaching $1 trillion in market capitalization by 2030 is reasonable, as the streaming giant is poised to benefit whether or not the U.S. heads into a recession.

That was the view of Pivotal Research analyst Jeffrey Wlodarczak, who weighed in on Netflix's latest quarterly earnings Friday. Wlodarczak was one of many analysts cheering the better-than-expected numbers. Netflix has a market cap of $416.2 billion, based on FactSet data.

Netflix $(NFLX)$ said late Thursday that its business is still booming and is well-protected from any economic headwinds.

The company said it continues to expect to double its advertising revenue growth in 2025 after it launched its advertising-backed service in the U.S. on April 1, with an international ramp-up starting in the second quarter.

Wlodarczak reiterated a buy rating and boosted his price target on the stock by $100, to $1,350 a share.

"Our view remains unchanged that Netflix has won the global streaming race as further evidenced by these results and this is what, in our opinion, winning looks like," he said.

Netflix offers a "very attractive" price to value for its service, while its advertising business should deliver strong growth, he said.

"Even in a global recession scenario NFLX is likely to be highly resilient," Wlodarczak said.

Oppenheimer's Jason Helfstein stuck to his outperform rating on Netflix's stock and boosted his price target by $50 a share, to $1,200.

Netflix has reported no increase in customer defections or downgrades of plans in a sign that its move to boost U.S. prices has been well received, he said.

"Despite an uncertain macro, increasing prices in France support confidence in business resilience," Helfstein said. "Commentary suggests high confidence in guidance, including ads, even in a weaker macro environment as consumers value TV more during economic uncertainty."

BMO analyst Brian Pitz reiterated an outperform rating on Netflix, upped his price target by $25 a share to $1,200, and said he expects the company to generate durable advertising growth for the next few years.

"Entertainment typically remains resilient during uncertain macro," he said. "Management noted that, given its current positioning within the advertising industry, it provides them with 'some insulation' as the ad market appears to be weakening."

MoffettNathanson analyst Robert Fishman said Netflix offers additional profit growth potential based on the reaction to higher costs for some subscribers.

"When looking at U.S. revenue per hour viewed, Netflix still appears to be underearning relative to its engagement and even after the recent price increases still has a consumer surplus to further raise prices," Fishman said.

To be sure, some risks remain, such as the cost of making the programming and the threat of competition, analysts said.

Netflix's stock was up 3.4% in after-hours trading on Wednesday. There is no trading in stocks on Friday due to the Good Friday holiday.

-Steve Gelsi

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April 18, 2025 08:37 ET (12:37 GMT)

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