Netflix (NASDAQ:NFLX) Surges as Subsidy Boom Fuels Subscriber Growth
Streaming giant Netflix flexes its market muscle again—this time with a little help from corporate welfare.
Wall Street's favorite binge-watcher just hit the jackpot. Netflix shares are climbing after scoring a hefty new subsidy, proving once again that in the tech world, growth isn't about innovation—it's about who gets the fattest government handout.
The numbers tell the story: fresh capital injections translate to bullish momentum. While traditional media companies bleed cash trying to compete, Netflix keeps cashing checks—and shareholders keep cashing in.
Another quarter, another masterclass in leveraging public funds for private gain. The house always wins—especially when it's playing with house money.
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Netflix landed a full $20 million from the project, which was actually the largest award that the latest round of competitors had seen yet. There were 48 total projects in the hunt for California money, reports noted, with a whopping $94 million in tax credits. Five studio films and 43 independent project landed some kind of cash out of the system that day, reports noted, but Netflix walked away with the biggest prize on its own.
This comes at an odd time, reports note, as the state program is about to undergo a bit of retooling starting July 1. The tax credits will be refundable over the course of a five-year period, which is different, because previously, the tax credits could only be used when the studios in question had tax liability in California to use the credits against.
A Familiar Face Back for More
Horror buffs—especially 90s horror buffs—will likely recognize the name “Kevin Williamson” immediately. One of the men behind Scream, which largely revitalized horror in the 1990s after a post-slasher drought when the Big Three—A Nightmare on Elm Street, Halloween, and Friday the 13th—had gone dark for a while, Williamson was also known for dramas like Dawson’s Creek.
Williamson recently came back with a new drama, The Waterfront, which premiered on Netflix less than a week ago, is drawing a lot of attention for not only being “Yellowstone, but…” which means highly similar to the smash hit Yellowstone, but also for its villain, a clean-cut drug dealer played by Topher Grace. If Netflix can land another Yellowstone-esque hit, then that will almost certainly be good news for investors watching Netflix’s churn rates like hungry, angry hawks.
Is Netflix Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Strong Buy consensus rating on NFLX stock based on 29 Buys and nine Holds assigned in the past three months, as indicated by the graphic below. After a 84.06% rally in its share price over the past year, the average NFLX price target of $1,256 per share implies 0.25% upside potential.
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