Netflix stock (NFLX) surged to all-time highs, trading over 13% in early trading on Wednesday, as Wall Street analysts praised the 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.
The company 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 as 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. 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.