12:50 PM EDT, 10/18/2024 (MT Newswires) -- Netflix ( NFLX ) is set to remain the world's "largest and fastest growing" streaming service into 2025 following stellar Q3 results and bullish Q4 guidance, Morgan Stanley said Friday in a report.

Earnings in Q3 rose to $5.40 per diluted share $3.73 a year earlier as revenue increased to $9.82 billion from $8.54 billion. Netflix ( NFLX ) on Thursday projected diluted EPS of $4.23 on revenue of $10.13 billion in Q4.

Netflix ( NFLX ) is raising its investment growth rate in 2025 to build its ads infrastructure and games business and add more live and international content, Morgan Stanely said. The stronger-than-expected revenue in 2024 is expected to help offset the investment growth, Morgan Stanley added.

With a $40 billion annual revenue base, margins nearing 30% and almost 300 million members, "we see a lot more growth ahead," Morgan Stanley said, citing prospects for increasing memberships and engagement share and boosting games and advertising segments.

Morgan Stanley boosted its price target on Netflix ( NFLX ) to $830 from $820 and reiterated its overweight rating.

Netflix ( NFLX ) shares jumped 9.7% in recent Friday trading.

Price: 754.66, Change: +67.01, Percent Change: +9.74