How Netflix's Robust Subscriber Growth And Business Strategies Drive Its Stock Towards The $500 Milestone

• Netflix's shares are currently performing well, with a steady increase of 2.20% this month following a substantial 10.70% growth in the previous month. The company's stock has seen an impressive surge of over 50% year to date.
• JP Morgan, has raised its stock price target for Netflix from $470 to $495, signaling a positive outlook for the streaming giant. This upward revision is backed by continuous growth in Netflix's subscriber numbers.
• Analysts at JP Morgan predict an addition of a staggering 21 million subscribers for Netflix over the course of the year, with a crackdown on password sharing potentially contributing to this increase.

Netflix Inc NFLX shares are performing strongly in the market right now. The stock price has increased by 2.20% this month, indicating a positive trend. 

Although it is not as impressive as the 10.70% growth seen last month, the momentum is definitely gaining pace.

Netflix has experienced a remarkable year so far, with its stock surging over 50% year to date.

The positive outlook for the streaming giant is further boosted by the notable projection from JP Morgan.

The renowned global banking powerhouse has raised its stock price target for Netflix from a respectable $470 to $495.

The company's continuous growth in subscribers is a crucial factor that could be driving this surge in stock price.

Analysts at JP Morgan predict that Netflix will add a staggering 2.5 million subscribers in the second quarter, followed by 6.75 million in the third quarter, and an impressive 10 million in the fourth quarter.

This would result in a remarkable total addition of 21 million subscribers for the year.

Netflix's crackdown on password sharing may be responsible for the recent surge in subscriber numbers. This strategic move could prove successful if the company meets its growth targets.

When analyzing Netflix's stock potential, it is crucial to consider technical factors rather than relying solely on numbers.

An important trend observed in Netflix's stock behavior is the tendency to retreat to the daily 20 simple moving average following each price correction.

This level has proven to be a reliable support base, contributing to the upward movement of the stock price.

Anticipated to be 2.84, the company's upcoming earnings are slightly lower than the 2.88 reported in their Q1 earnings. Nonetheless, this slight decline in earnings should not overshadow the positive prospects.

With a surge in subscribers and well-executed business strategies, the company continues to show upward momentum.

Overcoming the hurdles on the path to $500 for Netflix's stock price is no easy task.

The first major challenge is breaking through the strong resistance at $478.54, which was the low point in May 2021.

This crucial step is necessary to create space for the stock to continue its upward surge.

In essence, the recent growth in Netflix's stock price, combined with the optimistic projections and robust subscriber growth, all point towards a promising future for the streaming giant.

It's a compelling narrative that places Netflix's journey towards $500 in a perspective that's hard to ignore.

After the closing bell on Thursday, July 13, the stock closed at $450.38, trading up by 1.43%.