Driven by the enthusiastic support of Wall Street analysts and a series of innovative business strategies, streaming giant Netflix is experiencing new growth.

The steady rise in its stock price not only reflects the market's optimistic expectations of its future potential, but also highlights Netflix's sustained breakthroughs in content innovation, user experience, and business models.

Morgan Stanley analyst Benjamin Swinburne is particularly optimistic about Netflix, believing that its stock price has a potential for a 30% increase. In the latest customer report, Swinburne pointed out that Netflix is both a driver and a beneficiary of industry change.

Swinburne maintains a "outperforming" rating on Netflix stocks and predicts that Netflix's net new subscribers are expected to exceed 30 million this year. Combining measures such as introducing advertising support for subscription layers and cracking down on password sharing, Netflix's revenue is expected to continue to achieve double-digit growth next year. He further pointed out that significant expansion of the advertising business is needed for mid 2025 revenue growth, but believes that Netflix is laying the foundation for achieving this goal.

Earlier this month, Netflix announced to advertisers that the global monthly active users of its ad supported subscription layer had reached 40 million, a significant increase from 15 million in November and a year-on-year increase of 35 million.

In addition to the strong momentum of its advertising business, Netflix is also actively expanding into the field of live events, such as the successful Tom Brady talk show and live sports events.As part of a three-season agreement with the National Football League (NFL) in the United States, Netflix has won the right to live stream two NFL games during Christmas. In addition, Netflix announced a 10-year agreement with World Wrestling Entertainment (WWE), a subsidiary of TKO Group Holding, to start broadcasting WWE's flagship program "Raw" on its streaming service from 2025.

Netflix also plans to live stream the wrestling competition between Jake Paul and Mike Tyson in July.Since the beginning of this year, Netflix's stock price has risen by about 40%. Swinburne attributes this price surge to its strong operational execution capabilities, rather than just industry trends. Similarly, Evercore ISI analyst Mark Mahaney is optimistic about Netflix. He reiterated his "buy" rating on Netflix stocks and raised the target price from $650 to $700.

Mahaney cited positive survey data from May, pointing out the potential for further growth in new and live content. He wrote in a client report that Netflix's financial condition, fundamentals, and competitiveness are stronger than we expected. We believe that on-site activities and games are two very promising long-term new revenue opportunities. Of course, the highly anticipated second season of Squid Game is also coming soon!

According to a survey conducted by Evercore ISI on 1300 American Netflix users, user churn intention has dropped to its lowest point in two years, with only 35% of respondents indicating that it is highly likely or very likely to cancel Netflix membership in the next three months, a decrease of 3% compared to the previous period.

In addition, the survey shows that Netflix's market penetration rate has reached 57%, leading Amazon's 55% and YouTube's 47%.

Mahaney believes that Netflix's $6.99 ad support pricing may serve as a safety net, reducing potential user churn. He added that Netflix has once again expanded its leading advantage over most streaming competitors.