Netflix stock is up 40% year-to-date: is it too late to buy?

Netflix Inc (NASDAQ: NFLX) has gained more than 40% this year but an Evercore ISI analyst is convinced it’s not out of juice just yet.

Netflix stock could climb further to $700

Mark Mahaney reiterated his “outperform” rating on Netflix stock in a recent research note and raised his price target to $700 which translates to a near 10% upside on its previous close. 

Evercore conducted surveys in two of the leading markets for $NFLX: United States and the United Kingdom to forecast a high single-digit percentage upside on the current consensus EPS estimates for 2025. 

Mahaney performed an in-depth analysis of the management’s commitment to phasing out the “Basic Plan” as well. 

He concluded the research with confidence that Netflix is currently in its best position (financially and fundamentally) to date.

Watch here: https://www.youtube.com/embed/P3-pzA_CK7I?feature=oembed

$NFLX is committed to new revenue streams

Mark Mahaney drives his optimism for Netflix stock from recent discussions with its executives as well. 

The analyst recommends owning shares of the entertainment giant as it’s committed to securing new streams of revenue. Both live events and gaming, he added, could contribute meaningfully to the company’s growth in the long run. 

Evercore is also convinced that popular content releases like the next season of Squid Games will significantly boost subscriber engagement in 2024. 

All in all, Mahany sees Netflix Inc as well positioned for growth and expansion into new market segments. Its shares are currently trading just below their all-time high of close to $700. 

Netflix Q2 earnings in July will be key

On Friday, Netflix said “Bridgerton” has been a £275 million benefit to the U.K. economy since it first aired in 2020. 

The news arrives about a month before the Nasdaq-listed firm is scheduled to report its financial results for the second quarter. Consensus is for it to earn $4.7 a share versus $3.29 per share a year ago. 

Earlier this week, $NFLX said it’s moving its gaming head Mike Verdu to a new (not yet announced) role. Verdu told Gamesindustry.biz:

I’m so proud of what we’ve accomplished, and excited to start a new team at Netflix on the cutting edge of game innovation. New technologies have always been key to creativity in games of development and, as an entrepreneur at heart, this initiative is right in my happy place.

The mass media firm is yet to name a new head for his gaming division. Note that Netflix laid off over a dozen employees in April as Invezz reported here.

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