Streaming giant Netflix (NASDAQ: NFLX) had a strong sales performance in the fourth quarter of 2022, adding 7.7 million net subscribers during the quarter. This addition far exceeded the company’s goal of 4.5 million. Interestingly, Netflix’s positive results wouldn’t have come as a shock to a user who used TipRanks’ website traffic tool to closely monitor his website traffic for the company.
This tool provides insight into customer interest in a company’s products. An increase in website traffic may indicate an increase in demand for the company’s products, which often predicts strong earnings reports. In contrast, declining traffic trends suggest weak demand, which can indicate weak revenue.
According to the tool, Netflix websites registered a 14.21% increase globally in the fourth quarter compared to the previous quarter. The increase in website visits indicates that Netflix’s business has seen strong demand. Netflix’s efforts to deliver strong content during the quarter and the new ad-supported tier launched in November may have been successful.
Is NFLX a stock purchase?
TipRanks gives Netflix a medium buy consensus rating, based on 17 purchases, 14 holds, and 3 sales. NFLX’s average price target of $347.29 implies a 1.4% upside potential. The stock has risen about 57% over the past six months.
thoughts of the end
The company is optimistic about its near-term earnings growth prospects. This is based on expected subscriber growth due to password sharing restrictions and affordable ad-supported plans. Additionally, its strong financial position, strong brand strength, and growth initiatives make Netflix an attractive option for investors to consider.
Additionally, careful observation of website trends indicated by TipRanks website traffic tools can help investors make wise investment decisions.
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