Is Netflix Stock Still a Buy After Earnings, Price Hikes?
Analysts were bullish on Netflix stock ahead of its earnings beat, but what is Wall Street saying now? We take a closer look.


Netflix (NFLX) stock surged out of the gate Wednesday after the streaming giant beat top- and bottom-line expectations for its fourth quarter and announced a price hike on certain subscription tiers.
In the three months ending December 31, Netflix said its revenue increased 16% year over year to $10.25 billion, boosted by global streaming paid memberships that were 15.9% higher to 301.6 million. Its earnings per share (EPS) more than doubled from the year-ago period to $4.27.
The results cruised past analysts' expectations. Wall Street was anticipating revenue of $10.1 billion, earnings of $4.20 per share and paid memberships of 290.9 million, according to CNBC.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
For the first quarter of 2025, Netflix said it expects to achieve revenue of approximately $10.4 billion and earnings of roughly $5.58 per share. For the full year, the company raised its revenue expectations by about $500 million to a range of $43.5 billion to $44.5 billion. This represents growth of about 14% to 17% over 2024.
"We enter 2025 with strong momentum, coming off a year with record net additions (41 million) and having re-accelerated growth (16% increase in revenue)," Netflix said. "Moreover, we're in a leadership position in terms of engagement (approximately two hours per paid membership per day), revenue ($39 billion), and profit ($10 billion in operating income) in a market that is continuing to expand."
Netflix is raising prices on certain tiers
Netflix also said it is raising prices on some of its services, according to CNBC. Here's a breakdown of where the increases are occurring and by how much:
- Standard plan without commercials: $17.99 (from $15.49)
- Ad-supported plan: $7.99 (from $6.99)
- Premium plan: $24.99 (from $23.99)
"When you're going to ask for a price increase, you better make sure you have the goods and the engagement to back it up," said Netflix Co-CEO Ted Sarandos said on the company's conference call. "And I feel like what we have going into 2025 is just that."
Netflix's last series of price hikes came in October 2023.
Is NFLX stock a buy, sell or hold?
Netflix has been one of the best stocks for buy-and-hold investors and this impressive price action has been on full display over the past 12 months. Indeed, NFLX share have doubled in value over the past 12 months vs the S&P 500's 26% gain. Unsurprisingly, Wall Street is bullish on the blue chip stock.
According to S&P Global Market Intelligence, the average analyst target price for NFLX stock is $1,020.70, representing implied upside of about 5% to current levels. Additionally, the consensus recommendation is a Buy.
Financial services firm Wedbush is one of the most bullish outfits on NFLX stock and raised its price target to $1,150 from $950 after earnings and maintained its Buy rating.
"While massive subscriber growth was the primary driver in 2024, we expect price increases to drive revenue growth in 2025 and the ad tier to drive revenue higher in 2026," wrote Wedbush analyst Alicia Reese in a January 22 note. "We think Netflix can maintain high-quality production given its healthy cash position against competitors who have to tread more carefully to achieve or maintain some level of profitability."
Related Content
- Earnings Calendar and Analysis for This Week (January 20-24)
- Analysts' Top S&P 500 Stocks to Buy Now
- Stock Picks That Billionaires Love
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
What Trump’s 'Big Beautiful Bill' Means for Your Utility Bills
If passed, the 'Big Beautiful Bill' could make home energy upgrades more expensive and raise monthly costs. Here's how much more you might pay and how to prepare.
-
What Boomers and Gen Xers Can Learn from Younger Colleagues
Whether you're Gen X or a baby boomer, your younger colleagues' opinions on work may help you find a new job or be happier in the one you've got.
-
Eight Estate Planning Steps to Protect Your Loved Ones (and Your Legacy)
Two-thirds of Americans don't have an estate plan. If you're one of them, these are the essential steps to take now to prevent problems for your family later.
-
The Six Pros This Adviser Says You Need to Sell Your Business
Selling your business isn't as simple as getting the best price and walking away. These are the six professionals you'll need to get a deal across the finish line.
-
The Three C's to Financial Success: A Financial Planner's Guide to Build Wealth
Consistency, commitment and confidence in your chosen strategy are more critical to your financial success than finding the 'perfect' financial plan.
-
A Financial Adviser's Guide to Solving Your Retirement Puzzle: Five Key Pieces
If retirement's a puzzle you're struggling with, try answering these five questions. The answers will guide you toward a solution.
-
You're Close to Retirement and Cashed Out: How Do You Get Back In?
If you've been scared into an all-cash position, it's wise to consider reinvesting your money in the markets. Here's how a financial planner recommends you can get back in the saddle.
-
After the Disaster: An Expert's Guide to Deciding Whether to Rebuild or Relocate
Homeowners hit by disaster must weigh the emotional desire to rebuild against the financial realities of insurance coverage, unexpected costs and future risk.
-
A Financial Expert's Tips for Lending Money to Family and Friends
What starts as a lifeline can turn into a minefield if the borrower ghosts the lender. Following these three steps can help you avoid family feuds over funds.
-
Stock Market Today: Good Feelings and Solid Data Lift Stocks
Resilience and de-escalation defined another generally positive day for financial markets.