Who would have thought a boxing match between a 58-year-old Mike Tyson and an egomaniac 30 years his junior could pull 108 million viewers? Well, that’s exactly the amount of eyeballs that watched this farce of a fight and Netflix Inc (NASDAQ:NFLX, ETR:NFC). is rejoicing.
Netflix shares hit record high
Netflix shares surged to a record high on Tuesday, climbing nearly 3% to close at $871.32, following positive revisions to its stock price targets by Wall Street analysts.
This optimism comes in the wake of the streaming giant’s successful live broadcast of the Mike Tyson versus Jake Paul boxing match, which highlighted its potential in the live sports segment.
The company reported that the fight attracted up to 65 million concurrent streams globally and achieved an 'average minute audience' of 108 million viewers. It also ranked as the most-streamed program on Netflix across 78 countries last week.
Additionally, an earlier bout between Katie Taylor and Amanda Serrano recorded an average global viewership of 74 million.
Analysts highlight sports opportunities
Wedbush analysts raised Netflix's price target to $950 from $800, citing the Tyson-Paul event as evidence of Netflix's capacity to draw "outsized live events viewership". They noted that sports content was central to Netflix's strategy to expand its subscriber base.
Jefferies analysts echoed this sentiment, increasing their price target to $1,000 from $800. They expect upcoming events, including Netflix’s first live-streamed National Football League (NFL) games on Christmas Day, to further boost subscriptions.
Netflix recently announced that Beyoncé will perform during halftime of the second game between the Houston Texans and Baltimore Ravens, a move analysts believe could attract significant new viewers.
While Jefferies acknowledged some streaming quality issues during the Tyson-Paul fight, they remain optimistic these will be resolved before the NFL broadcasts.
Netflix shares have gained nearly 80% year-to-date, reflecting growing confidence in its diversification into live sports and events.
At least we can be certain the NFL matches will played with the intent of a proper sporting spectacle, rather than what seemed to be a staged piece of entertainment.