Netflix Stock Jumps to the Top of the S&P 500 After Earnings. Here's Why
Netflix stock is spiking Friday after the streaming giant beat third-quarter expectations and gave an upbeat fourth-quarter outlook.


Netflix (NFLX) stock is one of the best S&P 500 stocks Friday after the streaming giant beat top- and bottom-line expectations for its third quarter and issued a strong outlook for its fourth quarter.
In the three months ended September 30, Netflix said its revenue increased 15% year over year to $9.83 billion, driven by a 14% rise in global streaming paid memberships to 282.72 million. Its earnings per share (EPS) were up 45% from the year-ago period to $5.40.
The results topped analysts' expectations. Wall Street was anticipating revenue of $9.77 billion, paid memberships of 282.15 million and earnings of $5.12 per share, 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 fourth quarter, Netflix said it anticipates revenue growth of 15% and paid net additions to be higher than in the third quarter. Given this outlook, Netflix is on pace to grow revenue by 15% for the full year, which is the high-end of its previous guidance for revenue growth of 14% to 15%.
"We're pleased that we've reaccelerated our growth and, as we head into 2025, we expect to deliver solid revenue and profit growth by both improving our core series and film offering while investing in new growth initiatives like ads and gaming," NFLX said.
For 2025, the company anticipates revenue in the range of $43 billion to $44 billion, representing year-over-year growth of 11% to 13% from its 2024 revenue forecast of $38.9 billion. Netflix said it expects this growth "to be driven by a healthy increase in paid memberships," as well as an expansion to its average revenue per membership.
Is Netflix stock a buy, sell or hold?
Netflix has outperformed the broader market so far in 2024, up 55% vs the S&P 500's 23% gain. Unsurprisingly, Wall Street is bullish on the blue chip stock.
According to S&P Global Market Intelligence, the consensus recommendation among the 48 analysts covering the Magnificent 7 stock is a Buy. However, the average analyst target price of $745.21 sits at a slight discount to the current share price. It's likely, though, that analysts will increase their price targets on NFLX following the company's strong earnings report.
Financial services firm Needham already hiked its price target on NFLX, raising it to $800 from $700 after earnings while maintaining its Buy rating.
Needham analyst Laura Martin pointed to Netflix's strong Q3 subscriber adds as well as its solid full-year revenue forecast and higher 2024 free cash flow guidance of $6 billion to $6.5 billion as things she liked in the print. These are all catalysts that can boost NFLX stock's share price down the road, she adds.
Related Content
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.
-
Are You a Retirement Millionaire Too Scared To Spend?
If you are too scared to spend money in retirement, you may be saddled with regret. Here are three ways to safely enjoy your sizable retirement nest egg.
By Donna Fuscaldo Published
-
U.S. Treasury to Eliminate Paper Checks: What It Means for Tax Refunds, Social Security
Treasury President Trump signed an executive order forcing the federal government to phase out paper check disbursements by the fall.
By Gabriella Cruz-Martínez Published
-
Seven Questions to Ask When Evaluating Personal Loan Options
Taking out a personal loan too hastily could lock you into unfavorable terms with an untrustworthy lender. Ask these questions before signing anything.
By David Kimball Published
-
How Much Does Being Rich Matter in Retirement?
After a certain point, having more money in retirement won't make you any happier, new research shows. Instead, physical health, a sense of purpose, and a minimal amount of non-mortgage debt are more relevant.
By Christy Bieber Published
-
The Three Biggest Fears Keeping Retirees Up at Night
Here are the steps you can take to put those fears to rest and retire with confidence so you can relax and enjoy the life you've planned.
By Pam Krueger Published
-
What Can a Donor-Advised Fund Do for You? (A Lot)
DAFs and private foundations go about helping charities (and those who donate) in different ways. Each comes with its own benefits and restrictions to navigate.
By Julia Chu Published
-
Estate Planning When You Have International Assets
Estate planning gets tricky when you have assets and/or beneficiaries outside the U.S. To avoid costly inheritance mistakes, it pays to understand the basics.
By Kelsey M. Simasko, Esq. Published
-
Microsoft Stock: Innovation Spurs Its 100,000% Return
Microsoft's ability to recognize the "next big thing" has allowed sales – and its share price – to grow exponentially over the years.
By Louis Navellier Published
-
Three Essential Estate Planning Steps to Protect Your Nest Egg
After dedicating years to building your wealth and securing your future, make sure your assets are protected and your loved ones are provided for in the future.
By Nicole Farbo, CFP® Published
-
Is Chasing the American Dream Ruining Your Financial Life?
Too many people focus on visible affluence as a marker of success. Here's how to avoid succumbing to the pressure and driving yourself into debt.
By Anthony Martin Published