Netflix Climbs to 3rd in WSB Rankings Amid Roller Coaster Stock Performance

In the latest WSB rankings, Netflix advanced to the 3rd position, climbing 34 spots from the previous day.

Netflix's recent stock performance has seen a decline of 2.04%, marking a fifth consecutive day of losses and reaching its lowest point since September 2024. Despite this, the company projects robust growth in subscriber numbers, expecting to reach nearly 282 million this quarter, up from 247 million last year.

Netflix is known for hits like "Monster" and "Red Notice" and will release its third-quarter earnings after the market close on October 17. Analysts anticipate Q3 adjusted EPS to rise to $5.12, compared to $3.73 last year, with revenues expected to hit $9.77 billion, an increase from $8.54 billion the previous year. Investors are looking beyond this quarter, focusing more on future guidance.

Two key drivers of Netflix's recent growth have been the crackdown on password sharing and the introduction of an affordable ad-supported plan. While advertising hasn’t yet become a primary revenue source, it's seen as a future growth driver.

Analyst Alicia Reese sees Netflix accelerating its ad revenue contributions by 2026. Conversely, Analyst David Joyce warns of high stock valuations compared to growth expectations. This debate highlights the importance of sustained growth for Netflix's stock, a sentiment echoed by its 44% rise this year against the S&P 500's 22% gain.

Netflix also announced plans to produce a new documentary series with WWE, hinting at expanding partnerships. Further emphasizing its growth trajectory, Netflix's Q3 financial report revealed a 50% surge in operating profit and a 15% revenue increase, signaling strong ongoing performance.

Looking forward, Netflix is optimistic about Q4, forecasting another 15% revenue increase, surpassing analyst expectations, and maintaining a high operating margin. Subscriber growth did face challenges in North America, but the Asia-Pacific market posted significant gains with robust new content offerings.