Key takeaways
- Netflix (NASDAQ:NFLX) outperformed analysts’ expectations in its earnings report for Q3 2023
- Netflix earnings were driven by an uptick in YoY revenue for its operations in Asia Pacific and Latin America
- NFLX surged +16% in the past 24 hours, and the price prediction algorithm now expects the stock price to form a new all-time high above $1000
NFLX surges in recent hours to take the price back above $400
Netflix (NASDAQ:NFLX) has jumped by +16% in the past 24 hours after the company shared a positive earnings report for Q3 2023. Netflix reported that revenue generated from Asia Pacific (APAC) rose by 23% YoY which had a positive impact on its overall earnings for the quarter.
Before news broke about the company’s positive Q3 earnings report, NFLX stock had been in a downtrend since July. During this time, NFLX dropped -28.9% and had fallen back to a support level formed during Q1 at approximately $350. The +16% surge from NFLX today has taken the stock back above the $400 level in a matter of hours.
NFLX price action YTD showing major bounce from a support level on today’s candle, via TradingView
APAC revenue drives YoY performance increase of 7.7% for Netflix
The Q3 earnings report for Netflix outperformed Wall Street’s expectations. It was anticipated that Netflix would report earnings per share of $3.46 before the company posted its $3.73 figure — a 7.8% difference.
While Netflix revenue in APAC climbed by 23% YoY, the company also saw an uptick in Latin America which climbed 19% in the same time frame. Total earnings for Netflix in Q3 showed a 8.6% increase YoY, with 8.76 million additional subscriptions added globally.
Despite total revenue growing at a slower pace than has been seen for several years, Netflix still managed to beat analysts’ expectations and provide an increase to EPS QoQ for the second consecutive quarter.
Netflix quarterly earnings
Algorithm predicts +164% surge for NFLX in the next 12 months
The CoinCodex price prediction algorithm has forecasted a bullish run for NFLX over the coming year. In total, the stock price is expected to surge by +164% in a move that would take NFLX to a new all-time high above $1000.
The current NFLX all-time high came at the $699 price level in November 2021. While NFLX currently finds itself -42% down from this level, it has risen +34.8% YTD and has outperformed the S&P500 in the same time frame.
The algorithm expects NFLX to gradually make its way towards resistance at its former ATH over the coming months. Within half a year, NFLX is expected to break past its former high and begin a rally towards the $1000 mark by October 2024.
1-year price prediction for NFLX
Bottom line: Another positive earnings report for NFLX beats expectations and causes an instant rally
The Netflix stock price has enjoyed a positive year so far, rising +34.8% YTD. The company has continued to roll out new initiatives for its subscribers including its paid sharing feature that has helped to boost revenue over the past two quarters.
After outperforming Wall Street’s expectations in a positive Q3 earnings report, investors have flipped bullish and caused a significant move on the daily candle. Today’s price action has caused the price prediction algorithm to signal that new all-time highs could be on the way for NFLX over the next year, with a +164% move above $1000 deemed possible.
NFLX all-time price chart
Source: https://coincodex.com/article/33530/algorithm-predicts-netflix-nflx-stock-price-to-surpass-1000-in-2024/