Stock market today: Nasdaq jumps, S&P 500 eyes fresh record high as Netflix invigorates tech
Netflix stock (NFLX) surged to all-time highs, trading over 13% higher in early trading on Wednesday, as Wall Street analysts praised the streaming media company’s fourth quarter earnings results.
Shortly after the opening bell, the stock surged to just under $1,000 a share as analysts rushed to increase their respective price targets. Pivotal Research upped its target from $1,000 a share to $1,250 — the highest on the Street.
The streaming giant reported a whopping 18.9 million users in the fourth quarter, while revenue and earnings also handily beat expectations. It was the biggest quarterly subscriber gain in the company’s history.
Netflix also announced a $15 billion stock buyback and boosted its full-year revenue outlook in its after-hours report on Tuesday. Netflix now projects 2025 revenue between $43.5 billion and $44.5 billion, ahead of the prior $43 billion to $44 billion range.
“Q4 results were near flawless,” Jefferies analyst James Heaney said in a note following the results.
The strong subscriber gains come after the streamer ended 2024 with two back-to-back NFL games, a successful “Jake Paul vs. Mike Tyson” boxing match, and the return of “Squid Game.” To that end, the company said price hikes will be hitting the service — which analysts had consistently teased heading into the print.
The company raised the price of its ad-supported plan to $7.99 from the prior $6.99 rate. Its Standard, ad-free tier will now be $17.99, up from $15.49, while its Premium plan will increase by $2 to $24.99. Users who want to add an extra member will now pay $8.99, an increase of $1.