Netflix Reports Stellar Q4 Results, Stock Soars 12%

Netflix stock surged over 12% today after the company reported its impressive Q4 2023 results. The streaming giant’s stock is currently trading at $552.63. However, based on its strong free cash flow (FCF) over the next 12 months, analysts believe the stock could be worth as much as $625 or more.

In 2023, Netflix reported FCF of $6.925 billion, which accounted for 20.5% of its total revenue of $33.725 billion. This significant FCF can only improve over the coming year, especially as the company projects a 4% sequential increase in revenue for Q1 alone. Analysts also expect Netflix’s revenue to reach $42.60 billion by 2025, indicating a potentially upward trend.

Considering these figures, FCF could reach $8.21 billion with an estimated FCF margin of 20.5%. If the stock maintains its current 3.2% FCF yield, it could potentially rise by 27%, resulting in a price target of $625.08 per share.

Netflix’s strong FCF has significant implications for the stock’s value. The stock is expected to rise considerably, and analysts are likely to revise their price targets upwards following the impressive Q4 results. Prior to the results, the average price target among 42 analysts was [Value].

Netflix’s powerful FCF could drive the stock to reach new heights, making it a highly valuable investment opportunity in the coming months for investors.