With its stock price rising beyond $900 per share, Netflix (NFLX, Financials) is signaling a historic turning point that would lead to speculations of a potential stock split—a move Netflix has previously taken in 2004 and 2015, Barron's reported.
Analysts suggest a split might let ordinary investors buy shares more quickly and support the company to maintain its growing speed, according to the article.
Strong business performance coexists with the market climb—including a clear rise in advertising revenue. Netflix stated upfront ad revenue commitments have increased 150% compared to previous year. Deals with independent agencies and huge holding companies assist to explain the advances, which signal to growing trust in the advertising capacity of the platform.
Netflix's subscriber count has also been increasing as of the third quarter of 2024; it now consists of 278 million paid memberships spread over more than 190 countries. This development highlights how desirable the company is globally even with increasing competition in the streaming sector.
The company also showed its largest foray into live entertainment. Starting January 2025, Netflix will show WWE's "Monday Night Raw," hence extending its content offering. This moves Netflix to be more directly competitive with other services offering live television, such as Amazon Prime and YouTube.
Preserving an "overweight," rating, JPMorgan has increased Netflix's price estimate from $850 to $1,010. The bank attributed its positive outlook to Netflix's excellent content slate and predicted increase in advertising revenue through 2025. Moreover providing a competitive edge are the company's improved live programming tools and advertising capability.
