Paul vs. Tyson adds $25 billion to Netflix market cap

By November 21, 2024, streaming trailblazer Netflix (NASDAQ: NFLX) appears to have left its old stock market woes – woes that severely threatened the company in 2022 as share prices fell from nearly $700 to under $200 – far behind.

Much of the company’s growth since the start of the year was driven by the rollout of new products and features, with the ad-supported subscription tier perhaps being the most impactful development.

In total, NFLX shares are up 80.80% in the green year-to-date (YTD) to their press time price of $881.47 – essentially the latest in the string of all-time highs (ATH).

Additionally, Netflix crowned its all-year success with one of the most successful sports events in the history of streaming: the fight between the legendary Mike Tyson and internet personality Jake Paul.

Netflix gains $25 billion in the wake of Tyson-Paul fight

The fight – which ended in a victory for the 27-year-old influencer over the 58-year-old boxer – drew an impressive crowd, which Netflix reported at record-breaking 108 million viewers from every corner of the world.

The event was, in fact, so watched that numerous server issues with reported and it even generated a lawsuit over reported problems in accessing the stream.

Despite the technical mishaps, investors reacted positively, and NFLX shares rocketed from their November 15 closing price of $823.96 to their press time price of $881.47 – a 6.98% rise. The fight took place on Saturday, November 16.

The massive inflows enabled Netflix to grow its market capitalization by about $25 billion, and the streaming giant is valued at $377.59 billion at press time on November 21.

Analyst sees NFLX shares at $1,100 if it rides the sports wave

The fight, as it turned out, left analysts as impressed as investors and those viewers who able to watch the match, as evidenced by some of the recent price target revisions. 

Pivotal Research’s Jeffrey Wlodarczak – a man who wears the hats of both the firm’s CEO and of the company’s chief internet, media & communications analyst – reiterated his ‘buy’ rating for NFLX shares and estimated they could reach $1,100 within 52 weeks.

He was particularly impressed with Tyson-Paul fight and the crowd it attracted and noted Netflix could – thanks to its $7 billion cash pile – easily purchase the rights to more sporting events of a similar gravity.

Wlodarczak simultaneously reflected on Netflix’s success in 2024 and opined the company has significant room for growth ahead while juxtaposing the streaming giant’s strength with the relative weakness of its competitors.

Finally, on November 21, Bank of America’s (NYSE: BAC) Jessica Reif Ehrlich echoed Pivotal’s analysis and praise of the match and the viewership it attracted. Though BofA offered a slightly lower price target at $1,000, it still demonstrates strong confidence in NFLX stock’s future, constituting a 13.44% upside.

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