How to Trade Netflix After Q4 2024 Performance
Netflix is one of the leading streaming companies in the world. After reaching a post-pandemic high in November 2021, the stock collapsed over 75% by mid-2022 as competition increased from the likes of Disney+, Amazon Prime Video, HBO Max and Apple+.
Since 2022, the stock has rallied 500% reaching a new record-high last week. Learn more about Netflix's fourth-quarter 2024 performance and what analysts are forecasting for the stock.
| Stock: | Netflix Inc. |
| Symbol for Invest.MT5 Account: | NFLX |
| Date of Idea: | 28 January 2025 |
| Time Line: | 1 - 6 months |
| Entry Level: | $945.00 |
| Target Level: | $1,494.00 |
| Position Size for Invest.MT5 Account: | Max 5% |
| Risk: | High |
- The Invest.MT5 account allows you to buy real stocks and shares from some of the largest stock exchanges in the world.
All trading is high risk and you can lose more than you risk on a trade. Never invest more than you can afford to lose, as some trades will lose and some trades will win. Start small to understand your own risk tolerance levels or practice on a demo account first to build your knowledge before investing.
Netflix Q4 2024 Performance
Here are some of the key highlights from the fourth-quarter 2024 earnings report from Netflix:
- Earnings per share: $4.27 vs $4.20 expected
- Revenue: $10.25 billion vs $10.11 billion expected
- Net income: $1.87 billion, up from $938 million prior year
- Paid memberships: 301.62 million vs 290.9 million expected
Netflix posted earnings, revenue and membership numbers that beat analyst expectations. It added a record 19 million subscribers in the last quarter which is generally a good seasonal period due to the holiday season. The company stated that due to its "extra member accounts," its global viewing audience now exceeds 700 million.
Its fourth-quarter content included season two of its hit series "Squid Game" and live sporting events like the National Football League games on Christmas and the Mike Tyson vs Jake Paul boxing match. For this year, the Netflix management team said it will improve its core business with more films and series, grow its ad business and raise prices on some streaming tiers.
These are just a few reasons they raised their full-year 2025 forecast revenue by $500 million to a range of $43.5 billion and $44.5 billion. The stock surged over 14% higher on the earnings release but not everyone is optimistic about the future direction of Netflix's share price.
Last week, Benchmark analyst Matthew Harrigan maintained a sell rating on the stock citing that it is "overpriced in the current momentum market." The analyst stated the company's growth in overall subscriptions and advertising market is already quite mature. Many other analysts have also moved to a hold rating on the stock as highlighted below.
Netflix Stock Forecast - What do the Analysts Say?
According to 39 analysts polled by TipRanks for a Netflix stock forecast in the past 3 months, there are currently 28 buy, 10 hold and 1 sell ratings on the stock. The highest price level for a Netflix stock forecast is $1,494.00 with the lowest price target at $833.00.
The average price target for a Netflix stock forecast is $1,104.00.
An Example Trading Idea for the Netflix Stock Price
An example trading idea for the Netflix share price could be as follows:
- Buy the stock on a pullback to $945.00 to allow for volatility.
- Target just below the highest analyst price target of $1,494.00.
- Keep your risk small at a maximum of 5% of your total account.
- Time Line = 1 – 6 months
- If you buy 10 Netflix shares:
- If target is reached = $5,490.00 potential profit [($1,494.00 - $945.00) * 10 shares].
Remember that markets go up and down and it is unlikely the share price will move up in a straight line. In fact, it may even go much further down before it rises, especially due to some of the headwinds highlighted above by different analysts.
Be sure to exercise good risk management and always know how much you could potentially lose on a trade and the risks involved, as well as the costs.
With the Admiral Markets Invest.MT5 account you can buy and sell US stocks with a commission from $0.02 per share. This means buying 10 shares in Netflix stock would result in a commission of $0.20 ($0.02 * 10 shares) for executing a per-side transaction.
However, there is a low minimum transaction fee of $1. So, the example trading idea above would result in a commission of just $1 overall.
How to Buy Netflix Stock in 4 Steps
With Admiral Markets, you can buy shares with a commission of just $0.02 per share and a low minimum commission of just $1 on US stocks.
- Open an account with Admiral Markets to access the dashboard.
- Click on Trade or Invest on one of your live or demo accounts to open the web platform.
- Search for your stock in the search window at the top.
- Input your entry, stop-loss and take profit levels in the trading ticket.
Click on the banner below to trade Netflix stock today ▼▼▼
Do You See the Netflix Stock Price Moving Differently?
Remember that all analytics and trading ideas are based on the personal view and experience of the author.
If you believe there is a higher chance Netflix share price will move lower, then you can also trade short from a CFD (Contracts for Difference) trading account which Admiral Markets also provide.
The Trade.MT5 and Trade.MT4 account allows you to speculate on the price direction of stocks and shares using CFDs.
This means you can trade long and short to speculate on rising and falling stock prices.
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