Netflix Proves Durable Amid Uncertainty

NFLX is the leading streaming video company with over 300 million paying subscribers. The company is looking to keep growing too, as it eyes more ways to engage subscribers to generate revenue. Its retention and engagement metrics show people keep their subscriptions during economic uncertainty, and its ad-supported, lower-cost plan should help keep those numbers up, especially as the company keeps investing in international markets.

As for its finances, NFLX’s fourth-quarter revenue for fiscal 2024 was nearly $10.3 billion, which surpassed expectations and was a 16% jump over the prior year. Per-share earnings were $4.27, which more than doubled year-over-year. Its 19 million net customer additions marked the fastest quarterly gain in the company’s history, bringing total subscribers to nearly 302 million. In terms of guidance, NFLX projects up to $44.5 billion in annual revenue.

It’s no wonder NFLX shares are up 27% this year – and they could rise more. MAPsignals data shows how Big Money investors are betting heavily on the forward picture of the stock.

Netflix Shares Being Bought

Institutional volumes reveal plenty. In the last year, NFLX has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in NFLX shares. They reflect our proprietary inflow signal, pushing the stock higher:

Plenty of technology names are under accumulation right now. But there’s a powerful fundamental story happening with Netflix.

Netflix Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, NFLX has had strong sales and earnings growth:

• 3-year sales growth rate (+9.5%)
• 3-year EPS growth rate (+24.8%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +21.2%.

Now it makes sense why the stock has been powering to new heights. NFLX has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

Netflix has been a top-rated stock at MAPsignals. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report multiple times in the last year. The blue bars below show when NFLX was a top pick…sending share values higher over time:

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

Netflix Price Prediction

The NFLX rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author owns NFLX in personal and managed accounts at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.