Netflix shares retreat after hitting record high

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

The company made headlines on Tuesday when it announced that its live stream of the boxing match between Jake Paul and Mike Tyson attracted a global audience of 108 million viewers. This event marked a significant milestone for Netflix's live events strategy, which was further underscored by positive remarks from Jefferies analysts. They also set a new 12-month price target of $1,000 for the company's shares, recognizing the event as a "major breakthrough."

CFRA Research's Kenneth Leon highlighted Netflix's foray into live sporting events as a demonstration of its robust streaming capabilities. He anticipates that advertising, though still in its nascent phase, will become a significant contributor to revenue by 2026. CFRA joined the chorus of firms raising their price targets for Netflix.

BofA Securities analyst Jessica Reif Ehrlich lauded the success of the Paul vs. Tyson match, noting its record-breaking viewership and its implications for Netflix's potential in live sports broadcasting and advertising revenue growth. She reaffirmed a "Buy" rating and elevated the price objective to $1,000, citing the company's positive earnings momentum and its evolving opportunities in advertising and live content.

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Source: Investing.com