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Netflix, the streaming giant, announced its Q4 earnings report on January 23, 2024, after market close. The company’s revenue for the quarter was $8.83 billion, surpassing Wall Street’s estimate of $8.72 billion. The company’s earnings per share (EPS) were $2.11, beating analysts’ expectations of $2.21 per share. The company’s paid membership base grew by 8.8 million, which was above the expected 8.0 million.

Netflix’s Q4 Performance

Netflix’s Q4 performance was driven by the implementation of an ad-supported tier, efforts to address password sharing, and a robust content lineup. The company’s efforts to monetize its platform efficiently augur well for future growth. However, NFLX stock has trended higher and appreciated over 35% in one year, implying that the upside potential could be capped.

Analysts’ Recommendations

Netflix stock is rated as a Moderate Buy, with 16 Buys, seven Holds, and one Sell recommendation ahead of Q4 earnings. Analysts’ average price target of $517.29 implies a limited upside potential of 7.11% from current.

Conclusion

Netflix‘s Q4 earnings report showed strong revenue growth and exceeded Wall Street’s expectations. The company’s efforts to monetize its platform efficiently augur well for future growth. However, the stock’s upside potential could be capped due to its significant appreciation over the past year.

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