From July 2024 to the present, His shares grew almost 92% in dollars in Nasdaq. And so far this year, the return is around 45%. Meanwhile, from the worrying minimum of May 2022, The bullish trend accumulates a 695% jump.
Also, in the local stock market, the Netflix yieldwhich represent “portions” of shares of this company, they were also revalued bluntly. In pesos, the profit of the last year was 76%, while the benefit since January of this 2025 exceeds 49%. And from the 2022 floor, the return is shocking: 4,560%.
In this way, the technological corporation, which was consecrated as one of the most profitable members of the S&P 500 index, reached a Valuation of 45 times the projected profits for the next twelve months. In comparison, Nvidia operates with a ratio of 32 times and Nasdaq 100 is negotiated with a level of 27 times.
Netflix actions generate concern
This high assessment, the highest of the company since it enjoyed the impulse of the pandemic in 2021, caused that Even more optimistic investors and analysts will begin to fearespecially because already Little is missing for financial results of the last quarter, which will be published on July 17.
“I feel very good about its foundations, in terms of their price setting power, advertising business and movement towards live events, but expectations reached the point where Any disappointment would be a risk “he said Michael Smithportfolio manager at AllSpring Global Investments.
According to the analysts surveyed by Bloomberg, Netflix is expected to report an income growth of 14% in 2025 compared to the previous year. Although the figure would imply an improvement against 2022, when sales rose 6.5%, it would also mean a slowdown compared to the results of 2020 and 2021, moments in which there were annual jumps of 24%and 19%, respectively.
And in addition, the company’s actions rose so fast that they exceeded the Wall Street forecasts. Nowadays, The contribution of US $ 1,293 is 10% above the average objective of analystswhich means that The bullish potential could be limited facing the coming months.
Some analysts still trust Netflix
Anyway, Not all experts are afraid of the situation. “People usually ignore large companies because they are worried about the valuation, and I don’t mind spending more on what Netflix offers,” he said Ken Mahoneydirector at Mahoney Asset Management.
While the executive acknowledges that the price of Netflix is high, he clarified that the technology is “doing everything well and is like a snowball that becomes larger as it rolls downhill.”
To all this, the market must take into account that There are more and more institutional investors betting on Netflixwhich adds a genuine demand that supports current prices.
Bank of America explained that Netflix is in the hands of 49% of long -term investment fundswhich makes it the ninth technological action with the greatest participation. At the beginning of 2016, this total barely ranged around 14%.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
