Netflix stock hit an all-time high Tuesday on optimism about the streamer's potential to benefit from live events after last week's boxing match between Mike Tyson and Jake Paul.
Netflix (NFLX) shares soared to an all-time high on Tuesday as Wall Street analysts raised their price targets for the streaming giant, fueled by optimism over its potential gains from live events following last week's boxing match between Mike Tyson and Jake Paul.
The company reported that the event attracted up to 65 million concurrent streams worldwide, with an average minute audience of 108 million viewers.
Additionally, Netflix noted that the match was the most-streamed program on its platform in 78 countries last week, while an earlier fight between Katie Taylor and Amanda Serrano averaged 74 million global viewers.
Sports are central to Netflix's strategy for expanding its subscriber base, and analysts at Wedbush noted that the Tyson-Paul fight demonstrated the platform's ability to generate significant viewership for live events. They raised their price target for Netflix from $800 to $950, indicating a potential 9% upside from Tuesday's closing price.
Both Wedbush and Jefferies analysts believe that Netflix's upcoming livestream of NFL games on Christmas could further enhance subscriber growth. They pointed to Netflix's announcement of a halftime performance by Beyoncé during the second game between the Houston Texans and Baltimore Ravens as another factor likely to attract new subscribers.
Jefferies analysts also increased their price target for Netflix to $1,000 from $800, expressing confidence that any streaming quality issues experienced during the Tyson-Paul fight could be resolved by the time Netflix hosts an NFL-sized audience. They suggested that the platform may have underestimated the fight's popularity.
On Tuesday, Netflix shares rose nearly 3%, closing at a record $871.32. Since the beginning of the year, shares have increased by almost 80%.
Netflix is set to enhance its live content strategy next year by beginning broadcasts of WWE's flagship pro wrestling program, "Raw," starting in January.
Wedbush Securities analyst Alicia Reese reaffirmed her outperform rating on Netflix and raised her price target from $800 to $950. She stated, "We believe Netflix is well-positioned to boost ad tier revenue over the next several years by adding more live events, refining its advertising solutions, and leveraging new partnerships." Reese anticipates that the ad tier will be a major revenue growth driver by 2026, highlighting Netflix's successful approach to global content creation and profitability.
Similarly, CFRA Research analyst Kenneth Leon maintained his buy rating and increased his price target to $925 from $810. He noted, "Netflix is showcasing its streaming capabilities with select live sporting events that appeal to a global audience." Leon added that while advertising is still in its early stages, it is expected to become a significant revenue contributor by 2026.
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