Netflix stock rose by approximately 4% during midday trading on Monday following an upgrade by MoffettNathanson analyst Robert Fishman from Neutral to Buy, with an increased full-year price target of $1,100, up from $850.

Fishman expressed confidence in Netflix's dominance in the streaming industry but pondered on the company's future growth potential. Despite recent growth, he believes Netflix's high user engagement will lead to improved monetization and increased profits in the coming years.

Although Netflix stock has faced challenges in line with a broader tech sell-off, Fishman remains optimistic about the company's prospects, attributing its potential margin expansion to the "Netflix flywheel" effect.

The analyst highlighted Netflix's ability to invest in content due to its large subscriber base of nearly 302 million worldwide. He emphasized the positive impact of the company's content offerings on user engagement, subscriber growth, and potential pricing power, emphasizing the advantages Netflix holds as a streaming pioneer.

In addition to raising subscription rates earlier this year, Netflix introduced an ad-supported tier and expanded its focus on sports content. The company's strategy includes hosting major events like the Jake Paul and Mike Tyson match, which attracted a global viewership of over 108 million. Netflix continues to prioritize sports content, with endeavors like the recent addition of WWE Raw and potential future bids for UFC rights.