Netflix stock climbed to a record high on Friday as Wall Street responded positively to the streaming video leader's plan to grow its advertising business.
At least four investment firms raised their price targets on Netflix stock following the company's presentation to ad buyers Wednesday in New York City. Netflix was among a host of television and streaming companies showing off content and ad strategies during the annual upfronts season.
Canaccord Genuity reiterated its buy rating on Netflix stock and upped its price target to 1,380 from 1,200. The firm noted that Netflix has made substantial progress in developing its ads business.
Wolfe Research analyst Peter Supino kept his outperform rating on Netflix stock and raised his price target to 1,340 from 1,130. A meeting with management reinforced his confidence in Netflix's long-term growth picture, Supino said in a client note Friday.
"Netflix's growth drivers include subscriber growth domestically and internationally, engagement growth, pricing power, and a nascent ads business," he said. "Together, these initiatives support low double-digit percentage annual revenue growth over the rest of the decade."
On the stock market today, Netflix stock rose 1.2% to close at 1,191.53. Earlier in the session, it notched an all-time high of 1,196.50.
Netflix stock is approaching the 20%-to-25% profit-taking zone from its recent breakout, based on IBD trading principles.
On April 21, Netflix stock broke out of a double-bottom base at a buy point of 998.70 after its first-quarter earnings report.
Netflix Stock Is On Four IBD Lists
Netflix held its star-studded upfront presentation at the Perelman Performing Arts Center in New York City. Actors Jason Bateman, Jude Law, Charlize Theron, Kristen Bell and more were on hand to tout their upcoming movies and TV series on Netflix.
At the event, Netflix said its ad-supported service tier now reaches more than 94 million monthly active users worldwide.
The Netflix Ads Suite, Netflix's in-house advertising platform, is now live in the U.S. and Canada; will be live next week in Europe, the Middle East and Africa; and available in all 12 ad-supported countries by June.
"By controlling our own ad tech, we'll be able to deliver newer tools, better measurement, and more creative formats," Amy Reinhard, Netflix's president of advertising, told ad buyers.
Netflix stock is on four IBD stock lists: Leaderboard, SwingTrader, IBD 50 and Big Cap 20.
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