### Netflix Stock Hits Record High Amid Strong Quarterly Results and Growth Plans

Netflix stock reached a record closing price of just above $772 on Monday, continuing its upward trajectory driven by last week's better-than-expected quarterly performance. The streaming giant surpassed key financial benchmarks in its third quarter results and forecasted higher-than-anticipated sales for the current quarter. Last Friday, Netflix set a previous record with a closing price just below $764.

Analysts have highlighted Netflix's strategic positioning within the media industry. Jessica Reif Ehrlich from Bank of America praised the company's diverse revenue streams, particularly its booming advertising tier as well as its forays into gaming, sports, and live events. She maintained her Buy rating and adjusted her price target from $740 to $800.

However, Netflix's nearly 60% stock increase since the beginning of the year has raised questions about its high valuation. Analysts credit the company's diversified revenue, with the ad tier now responsible for over half of sign-ups in regions where it is available. Additionally, a crackdown on password sharing, which analysts say is almost complete, has bolstered subscriber numbers.

Deutsche Bank analyst Bryan Kraft suggested future revenue growth will depend on slower subscriber growth paired with upcoming price increases, post-password sharing crackdown. His perspective aligns with other experts who see a price hike as a short-term positive catalyst for the stock, citing Netflix's pricing leverage over its competitors. Citi analyst Jason Bazinet forecasts a 12% price increase in the U.S. by 2025.

Co-CEO Greg Peters expressed the company's intentions to continually adapt its pricing strategy. He emphasized the value of the ad-supported tier, which costs $6.99 in the U.S., for its affordability and accessibility. Despite these strategies, Netflix's year-over-year engagement levels remain flat, posing a challenge to raising prices.

MoffettNathanson analyst Robert Fishman noted the potential headwinds from stagnant engagement levels and questioned the sustainability of the current momentum. He maintained a Neutral rating, predicting the stock could fall to $670 by the end of the year. Nevertheless, he acknowledged Netflix's dominant position in the streaming arena, even as high market expectations leave some analysts skeptical.

In recent years, Netflix incrementally raised prices for its Standard and Premium tiers, with its last increase for the Standard plan in January 2022. The company recently phased out its lowest-priced ad-free plan, making the $15.49 Standard plan the cheapest ad-free option. Analysts and investors are now keenly anticipating another price hike, given the stock's premium valuation and the need for consistent revenue growth.

Bloomberg Intelligence analyst Geetha Ranganathan argued that a price increase might be overdue, indicating that it is crucial for sustaining Netflix’s lofty market valuation. She asserted that despite the competitive landscape, Netflix remains the unequivocal leader in the streaming wars.