Netflix Stock (NFLX) on Show as Share Price Hits Record High

Streaming giant Netflix (NFLX) was certainly one to watch today as it hit a new all-time high share price of over $1,234 in early trading.

Traditional Decline

The stock was boosted by a new note from five-star TipRanks-rated analyst John Hodulik of UBS who raised his target price for the stock from $1,150 to $1,450. He kept his Buy recommendation.

Hodulik said Netflix should continue to take advantage of traditional television giants struggling to stem the accelerated decline in their audiences. This, he said, reinforced the streaming group’s monetization prospects from new and existing subscribers and enhanced its operational leverage.

The broker said that Netflix’s internal data points to rising content consumption, with viewing hours in the second quarter up 10% year-on-year for the platform’s top 10 most-watched titles.

Cash Flow Surge

This growth marks an acceleration from the 5% recorded in the previous quarter, reflecting increased user engagement, UBS said.

Financially, Hodulik said that Netflix also appears to be controlling its content spending growth, which is growing at a slower pace than revenue. This budgetary discipline, combined with a ramping share buyback program, gives the company a solid cash generation outlook.

According to UBS, Netflix is now on track to generate approximately $20 in free cash flow per share in 2025, a figure that could climb to $30 in 2026 and then to $40 in 2027.

The Netflix share price has soared over 28% in the year to date helped by strong Q1 earnings.

Is NFLX a Good Stock to Buy Now?

On TipRanks, NFLX has a Strong Buy consensus based on 29 Buy and 9 Hold ratings. Its highest price target is $1,514. NFLX stock’s consensus price target is $1,227.06 implying an 0.47% downside.

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