Netflix (NASDAQ: NFLX) is the world's largest streaming company, and while it pioneered the industry, it now faces an avalanche of headwinds. For example, it's becoming harder for the platform to grow because of its enormous size, and it's also facing competition from over 80 other providers.

But Netflix is leaving no stone unturned when it comes to finding new paying customers. It has released a cheaper subscription tier supported by advertising, and it's also cracking down on password sharing.

Those initiatives appeared to drive some serious momentum across Netflix's business in the third quarter of 2023 (ended Sept. 30), and investors loved what they saw. They sent its stock surging 14% higher following the release of the Q3 report, but since it remains 42% below its best-ever level, I'll explain why there could be even more upside around the corner.

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Source Fool.com