### Netflix Shares Soar to Record High Amid Strong Subscriber Growth and Robust Content Lineup

Netflix shares surged to a record high, closing at $763.89 on Friday, reflecting a notable 11% increase. This uptick, which translated to a market value boost of over $28 billion, comes as investors exhibit confidence in the streaming giant’s ability to sustain subscriber growth, following the success of its recent content and strategic measures.

The company's robust performance was underscored by exceeding expectations in quarterly subscriber additions, surpassing estimates by over 1 million. Furthermore, Netflix projected even greater subscriber growth for the final quarter, anticipating a boost from the return of the acclaimed South Korean series "Squid Game." This positive momentum was complemented by better-than-expected profit and revenue figures, signaling Netflix's strategic shift to emphasize financial metrics beyond subscriber growth alone.

In the third quarter, Netflix added 5.1 million new users, a figure slightly lower than the previous year’s addition of 8.76 million users. Despite this slowdown, analysts like Matthew Dolgin of Morningstar highlight Netflix's potential in bolstering financial performance through various avenues, including strategic price hikes. Recent increases have been observed in Japan, the Middle East, Africa, and parts of Europe, with Italy and Spain next in line. Analysts anticipate potential price adjustments in the U.S. next year, a sentiment echoed by Bernstein analysts who noted that Netflix hinted at the possibility of price increases amidst stronger user engagement.

The company’s ad-supported tier also showed promise, accounting for over 50% of sign-ups in available countries during the third quarter. However, Netflix does not expect advertising to become a major growth driver until 2026. Following the release of its quarterly results, at least 20 analysts raised their price targets for Netflix stock, elevating the median target from $706.38 to $760, according to data from LSEG.

Currently, Netflix shares are trading at 30.40 times its 12-month forward profit estimates, significantly higher compared to Walt Disney's 18.50 and Comcast's 9.65. Since the beginning of the year, Netflix's stock has climbed roughly 57%, in stark contrast to Disney’s modest 8% rise and Warner Bros Discovery’s 31% decline. To maintain this upward trajectory, Netflix is leveraging a compelling content lineup, including the new "Knives Out" film, the latest "Stranger Things" season, and exclusive live events, such as two NFL games on Christmas Day.

Senior equity analyst at Hargreaves Lansdown, Matt Britzman, noted that while traditional media companies face financial challenges, Netflix’s robust content creation capabilities provide a competitive edge. As competitors struggle with financial losses, Netflix is well-positioned to capitalize on its strategic investments in content and subscriber engagement.