Netflix Rebounds After Price Hike, Warner Bid Withdrawal; Goldman Raises Target to $120

Hot Pick! Overseas Stocks

Netflix Shakes Off M&A Overhang

Plans to Spend $20 Billion on Content This Year

Push Into Live Rights Accelerates Expansion

Dropping Warner Deal Eases Funding Burden

Goldman Raises Price Target to $120

Netflix Inc., the world’s largest streaming platform, has kicked off a rebound in its shares by raising subscription prices. The stock, which plunged after the company entered the race to acquire Warner Bros., has recovered quickly since Netflix abandoned the bid. Netflix has laid out a plan to maximize profitability this year by pouring about $20 billion into content and sharply expanding live events, including broadcasts such as a recent BTS concert. Wall Street firms including Goldman Sachs have raised their price targets, arguing the stock still has further upside.

◇ Shares Stir on Subscription Price Increase

Netflix rose 0.27% to $98.93 on the Nasdaq on March 6. The stock climbed 6.88% over the past week. It had fallen to a closing low of $75.86 on Feb. 13 before regaining momentum after the company announced the price increase.

Netflix revised its pricing on Feb. 26, about 14 months after the previous increase in January 2024. Its standard plan rose by $2 to $19.99 a month from $17.99. Its premium plan, which allows up to four simultaneous viewers, also increased by $2 to $26.99 from $24.99. The company’s revenue this year is forecast at $50.7 billion to $51.7 billion, up about 12% to 15% from roughly $45.2 billion last year. CNBC reported that the latest price increase is directly tied to heavier content spending. Netflix plans to spend about $20 billion on content production this year.

Netflix had been under pressure for the past six months. Before its stock split, the shares held above $1,200 through October 2024, equivalent to about $120 on a post-split basis. The stock then tumbled after Netflix announced on Dec. 5 that it would acquire Warner Bros. for $72 billion. Shares fell to $96.79 on Dec. 8, breaking below the key $100 level. Investors had expected sizable synergies if Netflix combined with Warner Bros., the Hollywood studio behind franchises including Harry Potter and The Lord of the Rings, and its streaming service HBO Max, which has 130 million subscribers. But the market response was cold. Investors worried that tough antitrust scrutiny in the US and Europe would be unavoidable and that Netflix would have little room to pursue profitability measures such as subscription price increases during the merger review. Paramount then offered $110 billion for Warner Bros., and Netflix ultimately walked away. Investors welcomed that decision. Jason Bazinet, a Citigroup analyst, said Netflix no longer needs to absorb Warner-related acquisition costs reflected in its 2026 operating margin guidance. With the burden of a large-scale deal removed, he said, the stock can return to an upward track.

◇ From Sports to BTS, Netflix Ramps Up Live Push

Netflix is stepping up its push into live events. Starting this year, the company has moved to broaden its reach by securing rights to major sports properties including WWE, the FIFA Women’s World Cup, Major League Baseball and the World Baseball Classic. Netflix invested about $6.9 million to exclusively livestream a BTS concert held in Seoul’s Gwanghwamun Square area on Feb. 21. The event drew 18.4 million viewers across 190 countries. Despite the heavy traffic, Netflix delivered a stable stream, reinforcing confidence in its technical capabilities.

Netflix also partnered with NASA to livestream Artemis II’s lunar flyby. Co-Chief Executive Officer Ted Sarandos said live events are “high-immediacy content” that has a very positive effect on attracting new subscribers and retaining existing ones. Netflix will continue to strengthen its live-streaming strategy, he added.

Global investment banks are also lifting their targets as Netflix moves quickly to reshape its business. Goldman Sachs said on March 6 that Netflix appears poised to sustain double-digit growth over the next four years. The bank raised its price target to $120 from $100 and upgraded the stock to buy from neutral.

Oh Hyun-ah, reporter