Netflix’s stock (NFLX) has surged by 40.6% year to date, outshining the Consumer Discretionary sector’s 1% decline.
This remarkable performance is attributed to Netflix’s relentless pursuit of original content creation, promising long-term growth prospects.
Netflix, currently a Zacks Rank #3 (Hold) company, is strengthening its presence by expanding its West Coast production complex in Albuquerque, NM. This expansion comes six years after Netflix first established its production hub in 2018.
The new expansion encompasses four state-of-the-art soundstages, three mills, a production office, two stage support buildings, and two dedicated backlot areas sprawled across 108 acres.
Notable series and films produced at the Albuquerque studio include hits like “Stranger Things,” “The Harder They Fall,” “Army of the Dead,” and “El Camino: A Breaking Bad Movie.”
Netflix’s investments in New Mexico have surpassed $575 million directly, with an overall investment touching $900 million when accounting for other productions at Netflix Studios Albuquerque.
Furthermore, Netflix has been a significant job creator, hiring over 4,000 cast and crew members in the region between 2021 and 2023, showcasing its dedication to the local economy.
Netflix, Inc. Price and Consensus
Netflix is enhancing its production hub with a trove of new content across multiple genres to drive revenue growth in the forthcoming quarters.
Analysts project Netflix’s 2024 revenues to hit $38.75 billion, indicating a robust 14.91% year-over-year growth.
Upcoming series like “America’s Sweethearts: Dallas Cowboys Cheerleaders,” “That ’90s Show,” and “The Mole” Season 2 promise captivating storylines that are sure to enthrall audiences.
In the movie realm, Netflix presents the eagerly anticipated “Beverly Hills Cop – Axel F,” featuring Eddie Murphy reprising his role as Detective Axel Foley. Documentary enthusiasts can look forward to “Skywalkers: A Love Story” and “Mountain Queen: The Summits Of Lhakpa Sherpa.”
Additionally, Netflix is diversifying its offerings with gaming and animated series like “Exploding Kittens” and “Terminator Zero,” aiming to cater to varying tastes and preferences.
Despite its innovative content strategy, Netflix faces fierce competition from streaming giants like Amazon, Disney, and Paramount Global.
According to a report by CULT MTL, Netflix leads the global streaming market with a 24% share, followed closely by Amazon’s Prime Video, Disney+, and Paramount+.
NFLX’s Upcoming Content to Aid Top-Line Growth
Netflix’s expanding original content is a significant driver for its long-term growth trajectory. Nevertheless, the intensifying competition in the streaming landscape poses a challenge for NFLX.
The company’s strategy of diversifying its content portfolio in various regions globally, such as India, Mexico, Spain, Italy, Germany, Brazil, France, Turkey, and the Middle East, underscores its commitment to fostering global growth.
Analysts foresee NFLX’s second-quarter 2024 earnings per share at $4.7, representing an uptick of 6 cents over the last 60 days. Furthermore, the consensus estimate for 2024 earnings stands at $18.31 per share, up by 18 cents over the same period.