It’s undeniable that Netflix (NASDAQ:NFLX) stock has done well in 2023 so far. Yet, even the most cautious traders shouldn’t rule out a continuation for the rest of the year.

Netflix deserves a confident “A” rating and will probably punish the short-sellers and several analysts on Wall Street clearly recognize this.

There’s a problem that has dragged on Netflix’s revenue for years, which we will discuss in a moment. Netflix has remained consistently profitable and beat analysts’ EPS forecast for 2023’s first quarter. So, let’s see what the problem is and, most importantly, what Netflix is doing to address it today.

Results From Password Sharing Crackdown

Password sharers worldwide: Netflix is coming for you. Or at least, Netflix will stop you from sharing your password and dragging on the company’s subscription revenue. That’s the essential message that Netflix relayed with an update back in February.

Netflix’s long-term investors have wanted the company to address this problem for a while. Fast-forward to June, and there’s evidence that Netflix’s password sharing crackdown is already successful. Here’s the rundown, courtesy of Antenna:

“Since alerting subscribers in the United States that it would begin to curb password sharing on May 23, 2023, Netflix has had the four single largest days of U.S. user acquisition in the four and a half years that Antenna has been measuring the streaming service.”

That’s impressive, wouldn’t you agree? Additionally, Antenna reported, “Based on the most current data available, Netflix saw nearly 100,000 daily Sign-ups on both May 26 and May 27.”

Surely, that two-day spike in subscription sign-ups after Netflix cracked down on password sharing in earnest wasn’t just a coincidence.

Analysts Have High Hopes for NFLX Stock

In general, Wall Street is optimistic about Netflix’s future prospects. Currently, NFLX stock has 17 “buy” ratings, compared to 13 “hold” ratings and only two “sell” ratings.

Even after the stock’s impressive rally in 2023 so far, some analysts are clearly preparing for a continuation move.

For example, J.P. Morgan analyst Doug Anmuth raised his price target on Netflix shares from $380 to $470. Anmuth also reaffirmed his “overweight” rating (which is similar to a “buy” rating) on the stock.

Meanwhile, Wells Fargo analyst Steven Cahall also issued an “overweight” rating on NFLX stock, and ambitiously raised his price target on the shares from $400 to $500.

Anmuth cited Netflix’s password sharing crackdown, while Cahall (according to Barron’s) observed Netflix’s “opportunity in the TV ad market following the launch of its ad-supported tier in November.”

Then there’s Pivotal Research Group analyst Jeffrey Wlodarczak, who reiterated his “buy” rating on Netflix shares. He’s evidently even more bullish than the other two aforementioned analysts, as Wlodarczak lifted his price target on the stock from $425 to $535.

In a similar vein to Cahall’s commentary, Wlodarczak envisioned benefits from Netflix’s “subscriber and subscriber monetization benefits from their ad-supported tier.”

NFLX Stock Can Keep Moving Higher

There are never any guarantees, but currently there’s nothing stopping Netflix from continuing to provide excellent value to its shareholders. If the analyst community is right, then the short-sellers taking positions against Netflix could be in big trouble.

At the very least, the skeptics can’t deny the immediate and impressive results of Netflix’s actions to address password sharing. So, NFLX stock earns a confident “A” rating and investors should consider adding it to their holdings.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.