After the close of the main trading session on the stock market on Tuesday, Netflix released its Q4 2024 results. The report was exceptionally strong:

→ Analysts expected the company to add 9.18 million paid subscribers during the quarter, but the actual figure reached 18.91 million, which is 15.9% more than in the same quarter last year.
→ Total subscribers reached 300 million.
→ Earnings per share amounted to $4.27 (expected: $4.20).
→ Gross revenue: actual = $10.25 billion, expected = $10.11 billion.

The company’s success was supported by products such as Squid Game, Bridgerton, and Nobody Wants This. During the quarter, 55% of customers chose ad-supported plans, and subscriptions to this plan grew by 30%. Netflix executive Gregory Peters believes that advertising revenue could double between 2024 and 2025.

As shown by the Netflix (NFLX) stock chart, the market has experienced increased volatility following the release of the report. On 22 January:
→ Trading opened with a wide bullish gap – approximately 14% higher than the closing price on 21 January.
→ However, during yesterday’s trading session, shares fell by approximately 4%, indicating that the initial reaction to the positive news might have been overly optimistic.

According to technical analysis of the NFLX chart, it is reasonable to assume that after a rise towards the psychological level of $1,000, the market is vulnerable to a correction. After touching the upper boundary of the ascending channel, the price could retreat to its median around the $910 level, which also corresponds to a 50% retracement of the A→B impulse.

According to TipRanks:
→ The average price target for NFLX shares in 12 months is $986.
→ 20 out of 29 analysts recommend buying NFLX shares.

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