JPMorgan Raises Netflix Target Price to $1,010 on Strong Subscriber Growth and Revenue Growth
JPMorgan has increased its target price for Netflix Inc. (NASDAQ: NFLX) to $1,010 from $850 due to the company’s strong subscriber growth, increasing ad revenue, and price hikes. The banking giant cites Netflix’s accelerating subscriber growth, with the recent Jake Paul vs. Mike Tyson boxing event driving record viewership, reaching 60 million households worldwide.
Netflix is also experiencing significant growth from its ad-supported tier, which accounts for over 50% of sign-ups in markets where it is available. The company expects ad-tier subscriber growth to scale further in 2025, supported by partnerships with companies like The Trade Desk (NASDAQ: TTD) and Google (NASDAQ: GOOGL).
The company’s proprietary ad server is set to be rolled out globally in 2025, which JPMorgan believes will enhance monetization. Additionally, Netflix is capitalizing on live events, with its two NFL games on Christmas Day expected to boost ad revenue.
Despite foreign exchange pressures reducing revenue estimates, JPMorgan projects strong revenue growth of 15% in 2025. Free cash flow is expected to rise 46% year-over-year in 2025 to $9.3 billion, with further growth to $11 billion in 2026.