Netflix is increasing its investments in content and streaming video technology while rivals to the internet television network are struggling. That was the message from Co-Chief Executive Ted Sarandos at an investor conference late Tuesday. Netflix stock rose Wednesday on the news.
Sarandos touted the streaming video service's upcoming content slate and company initiatives at the UBS Global Media and Communications Conference in New York City.
"In 2025, we have an embarrassment of riches," Sarandos said. "It's going to be a big year."
Netflix's upcoming content slate includes fresh seasons of hit shows "Stranger Things," "Squid Game," "Wednesday," "The Night Agent," "Emily in Paris" and "Ginny & Georgia." It also will be launching new series and major movie premieres. Plus, it will begin broadcasting the weekly live pro wrestling series "WWE Raw" on Jan. 6.
In addition to new content, Netflix is investing in in-house advertising technology and improved live broadcasting capabilities, Sarandos said.
On the stock market today, Netflix rose 2.5% to close at 936.56. Earlier in the session, it notched a record high of 941.75.
Rivals Are 'Circling The Wagons'
Meanwhile, Netflix's competition is still trying to figure the business out.
"Our competitors are circling the wagons a little bit and cutting a lot," Sarandos said. "So, when I look at this, I like where we're at right now. I like where we sit for 2024, 2025 and the foreseeable future."
The "old media players" are attempting to shift to the streaming model while "cutting their way to profitability," Sarandos said. And that's not great for their service offerings, he added.
Rivals like Walt Disney and Warner Bros. Discovery also are using bundled service plans in an effort to reduce subscriber churn.
At the same time, tech giants like Amazon and Apple are making a play for the market as well, Sarandos said.
Netflix has more than 282 million subscribers worldwide, but still has room to grow, Sarandos said.
"We're under 10% of total television time even in our most mature markets. So, our percentage of total viewing has got a ton of runway to grow," he said.
Netflix Stock Scores Price-Target Hike
Elsewhere on Wall Street, JPMorgan analyst Doug Anmuth reiterated his overweight, or buy, rating on Netflix stock and upped his price target to 1,010 from 850.
Anmuth predicted healthy organic growth for Netflix in the fourth quarter and 2025, with subscriber additions fueled by a strong content slate. He also said Netflix's advertising-supported tier will be a significant contributor to its results next year.
Netflix stock is on two IBD lists: IBD 50 and Big Cap 20.
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