Netflix (NASDAQ:NFLX) was confirmed as an Outperform by corporate bond research firm Gimme Credit in a note this week, with the firm noting the company's quarterly earnings release earlier this week.
With Netflix adding more than 13 million subscribers in the fourth quarter, analysts at Gimme Credit noted it is the most additions since the first quarter of 2020. In addition, "the subscriber base increased 13% versus the previous year, the best percentage growth since the first quarter of 2021."
"Paid sharing was introduced in the fourth quarter of 2022, and the impact was muted in the first couple of quarters. But it has taken off considerably of late," analysts added.
"As impressive as the fourth quarter performance was, the outlook is even better," analysts added, noting that NFLX management issued guidance for a 13% increase in revenue for the first quarter.
While subscriber growth is not likely to match the fourth quarter, Gimme Credit thinks it will be considerably higher than the subscriber additions in the first quarter of 2023, establishing Netflix as the "clear winner in the streaming wars, at least for now."
"We expect the strength to continue throughout 2024, resulting in a revenue increase of more than 10%," analysts at Gimme Credit said. "The addition of WWE Raw in 2025 will further the company's ambitions in live event programming while allowing the show to be distributed more widely beyond North America."
"We confirm our outperform recommendation, with the 2030 notes trading at a spread of +80 to the 5-year Treasury," analysts concluded.