Netflix’s stock is experiencing unprecedented growth, with its value rising over 12% to $557 after a stellar Q4 2023 report, pushing the company’s stock even closer to its projected worth of $625 or more. This growth is largely attributed to a record-setting increase in subscribers, with the streaming giant adding an impressive 13.1 million users during the last quarter.

The Q4 report exceeded initial expectations, leading to a 7.9% surge in NFLX stock during the afternoon session. Furthermore, Netflix management predicated record profit margins for 2024, sending shares to two-year highs on Wednesday. This prediction hints at the company’s growing strength within the market, despite fierce competition.

Moreover, the surge in Netflix shares could be because of the “tail wagging the dog,” according to an analyst. The rise in the value of NFLX stock isn’t merely due to user growth but can also be attributed to advancements in their advertising business and collaboration with WWE.

Prior to Wednesday’s opening, Netflix shares had already surged over 10% due to the sustained success of its streaming business, catalyzed by the company’s record subscriber growth during the fourth quarter.

In summary, the remarkable surge in Netflix stock is an outcome of robust Q4 results, a record rise in subscribers, advancements in advertising, and strategic partnerships. Thus, Netflix continues to solidify its position as a powerful player in the stock market and streaming industry.