Netflix Stocks Decline After Reaching Record Highs

On Monday, Netflix Inc. (NASDAQ:NFLX) shares experienced a 3% decline after reaching an all-time high intraday level of $908 last Thursday. Despite this pullback, the streaming giant's stock has shown a remarkable 78% increase year-to-date. In response to Netflix's recent performance, several brokerage firms have updated their price targets. Notably, BofA Global Research raised its target from $800 to $1,000 last week.

The company made headlines on Tuesday by announcing that the live broadcast of the boxing match between Jake Paul and Mike Tyson reached a global audience of 108 million viewers. This event marked a significant milestone for Netflix's live event strategy and was further highlighted by positive comments from Jefferies analysts. Analysts also described the event as "a huge leap," setting a new 12-month price target of $1,000 for the company’s shares.

Kenneth Leon from CFRA Research emphasized Netflix's entry into live sports events as indicative of the company’s strong streaming capabilities. Leon predicts that advertising, still in its early stages, will become a significant revenue component by 2026. CFRA also joined the ranks of firms raising their price target for Netflix.

BofA Securities analyst Jessica Reif Ehrlich praised the success of the Paul - Tyson match and highlighted the record-breaking viewership, emphasizing its importance for Netflix's potential in live sports broadcasting and advertising revenue growth. Ehrlich reiterated her "Buy" recommendation and raised her price target to $1,000, citing the company's positive earnings momentum and emerging opportunities in advertising and live content.