𝗡𝗲𝘁𝗳𝗹𝗶𝘅’𝘀 𝗟𝗮𝘁𝗲𝘀𝘁 𝗘𝗮𝗿𝗻𝗶𝗻𝗴𝘀: 𝗔 𝗠𝗮𝘀𝘁𝗲𝗿𝗰𝗹𝗮𝘀𝘀 𝗶𝗻 𝗦𝗰𝗮𝗹𝗶𝗻𝗴 𝗖𝗼𝗻𝘁𝗲𝗻𝘁 𝗣𝗿𝗼𝗳𝗶𝘁𝗮𝗯𝗶𝗹𝗶𝘁𝘆 Netflix stock is soaring over 11% after its latest earnings report. The company exceeded expectations with EPS of $5.40 (vs. $5.12) and revenue of $9.83 billion (vs. $9.77 billion). Looking ahead, Netflix projects 15% revenue growth and a six-point improvement in operating margins. By 2025, they expect revenue to hit $43-44 billion—$4-5 billion more than 2024. Here are 𝟯 𝗸𝗲𝘆 𝗹𝗲𝘀𝘀𝗼𝗻𝘀 we can all learn from Netflix’s approach: 1. 𝗙𝗶𝘅𝗲𝗱 𝗖𝗼𝗻𝘁𝗲𝗻𝘁, 𝗘𝘅𝗽𝗮𝗻𝗱𝗶𝗻𝗴 𝗔𝘂𝗱𝗶𝗲𝗻𝗰𝗲 Netflix spreads its fixed content costs over a growing audience, with 14% subscriber growth and increasing engagement. Whether it's hit series or sports offerings like NFL games, their content model scales profitably with each new viewer. 2. 𝗚𝗶𝘃𝗶𝗻𝗴 𝗔𝘄𝗮𝘆 𝗩𝗮𝗹𝘂𝗲 𝘁𝗼 𝗚𝗿𝗼𝘄 Netflix’s strategic moves, like offering free sports events, and a lower priced ad tier prove that giving value leads to growth. As Co-CEO Ted Sarandos stated in the Q3 earnings call, “Engagement drives retention and acquisition, which in turn places more value on a Netflix subscription”. This strategy keeps users engaged and drives new signups. 3. 𝗡𝗼 𝗡𝗲𝗲𝗱 𝘁𝗼 𝗕𝘂𝗻𝗱𝗹𝗲—𝗧𝗵𝗲𝘆 𝗔𝗿𝗲 𝘁𝗵𝗲 𝗕𝘂𝗻𝗱𝗹𝗲 Unlike other platforms, Netflix doesn’t rely on traditional bundles. With a wide range of content, including live sports, they are the ultimate bundle, growing through value-driven engagement without complex packaging. While other companies raise prices or experiment with aggressive strategies, Netflix shows that 𝗳𝗼𝗰𝘂𝘀𝗲𝗱 𝗲𝘅𝗲𝗰𝘂𝘁𝗶𝗼𝗻 𝗮𝗻𝗱 𝗼𝗽𝘁𝗶𝗺𝗶𝘇𝗶𝗻𝗴 𝘃𝗮𝗹𝘂𝗲 lead to sustainable growth. Full transcripts: https://lnkd.in/g3mEDWcH #Strategy #BusinessGrowth
Eddy Recio’s Post
More Relevant Posts
-
Welcome to Extreme Investor Network, where we provide you with the latest insights and analysis on all things finance. Today, we dive into the recent earnings report from Netflix (NFLX) and how it has impacted the stock price. Netflix reported first quarter earnings that exceeded expectations, with a remarkable 9 million-plus subscribers added in the quarter. #expectations #experiences #falls #growth #Netflix #outlook #revenue #Robust #Short #subscriber
Netflix experiences robust subscriber growth, yet Q2 revenue outlook falls short of expectations
https://www.extremeinvestornetwork.com
To view or add a comment, sign in
-
At Extreme Investor Network, we bring you the latest insights on market trends, trading strategies, and investment opportunities. Today, we dive into the recent earnings report of Netflix, Inc., highlighting key developments that have captured investors' attention. Earnings Overview Netflix reported earnings of $5.28 per share, surpassing analysts' expectations of $4.52 per share. #earnings #exceeds #Netflix #Predictions #Subscription
Netflix Exceeds Earnings and Subscription Predictions
https://www.extremeinvestornetwork.com
To view or add a comment, sign in
-
Netflix reported earnings today and Reuters reached out to us for commentary on why the stock was dropping📉 in afterhours trading on mostly good news! “Netflix beats subscriber targets, cautions on ad growth”—reporting by Dawn Chmielewski, Lisa Richwine, and Juby Babu. 🎬#Netflix did a phenomenal job adding over 8 million customers in the second quarter—with a new season of Bridgerton and other noteworthy shows like Baby Reindeer, Hitman, and Under Paris —resoundingly beating their own forecasts. ⚠But Netflix’s announcement that it will no longer reporting subscriber numbers next year is leading some of us to think that subscriber growth won’t maintain the same strong pace (going forward) and that management wants us to focus on corporate earnings growth rather than number of eyeballs, especially as they expand their offerings in video games. 🛍️Tepid growth in ad revenue, though expected by some analysts, probably disappointed many #investors; Netflix needs to learn how to maximize #advertising revenue much as Alphabet Inc., Facebook, and Amazon have. QUOTED EXCERPT "Netflix is still the best and most profitable #streaming company out there, but with technology stocks generally retreating over the last several days, some investors may sell on the generally good news and taking profits now while waiting for a possible better re-entry point for the stock," said Michael Ashley Schulman, chief investment officer at Running Point Capital. ~~ Disclosure: The opinions expressed are those of Running Point Capital Advisors, LLC (Running Point) and are subject to change without notice. This is not investment advice and this is not a recommendation to buy or sell a security. The opinions referenced are as of the date of publication, may be modified due to changes in the market or economic conditions, and may not necessarily come to pass. Past performance is not indicative of future results. Forward-looking statements cannot be guaranteed. Running Point is an investment adviser registered with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training. More information about Running Point’s investment advisory services and fees can be found in its Form ADV Part 2, which is available upon request. RP-24-102
To view or add a comment, sign in
-
Netflix for third quarter reported revenue of $9.83 billion, increased by 15% Year-over-Year (YoY) from $8.54 billion a year earlier. This growth was driven by initiatives such as the crackdown on password sharing, the introduction of an ad-supported tier, and last year's price increases on select subscription plans. Net Income for the third quarter rose to $2.36 billion, or $5.40 per share, compared to $1.68 billion, or $3.73 per share, in the same quarter last year. Netflix gained 5.1 million subscribers during the quarter, bringing its total membership to 282.7 million across all pricing tiers. However, starting in 2025, Netflix will stop reporting subscriber numbers to investors, shifting its focus toward revenue and other financial metrics as key performance indicators. Looking ahead, Netflix plans to debut the second season of its hit series Squid Game in Q4, along with live sports events, including a boxing match between Jake Paul and Mike Tyson and two NFL games on Christmas Day. The company posted diluted earnings per share (EPS) of $5.40, significantly surpassing the $3.73 EPS reported during the same period last year. Moreover, Netflix's ad-tier memberships surged 35% quarter over quarter, and the company plans to launch the service in Canada next quarter, with a broader rollout set for 2025. While Netflix doesn’t anticipate advertising to become a major growth driver until 2026, the ad-tier accounted for over 50% of sign-ups during the third quarter in regions where it is currently available. Outlook On 17th October, Netflix shared its expectations for fourth-quarter revenue to hit $10.13 billion, with earnings per share projected at $4.23. Looking ahead, the company forecasts full-year 2025 revenue to be between $43 billion and $44 billion, driven by improvements in its core series and film offerings, along with investments in new initiatives like ads and gaming. A significant portion of this revenue growth is expected to come from what Netflix described as a “healthy increase in paid memberships". The company anticipates Q4 operating margin of 22% On 17th October, Netflix Shares surged approximately 5% in after-hours trading. Sources: Netflix CNBC Visit Us: https://lnkd.in/dbW2rJ75 Capital at Risk | Sophisticated Investors Only William Rhind Manuj Sarpal Benoit Autier Gianmarco Roncarolo Matthew Lamb, CAIA® Evan Ong
To view or add a comment, sign in
-
Netflix stock plunges after earnings report, despite strong subscriber growth and profits. https://lnkd.in/dZas5rud Netflix #Techmoonshot #technology #TechNews #Moonshot #StockMarket #earnings #FinancialNews #subscribers #MarketInsights #MarketAnalysis #Profitdecline
Netflix stock plunges after earnings report, despite strong subscriber growth and profits.
https://techmoonshot.com
To view or add a comment, sign in
-
Netflix got 2024 off to a flying start, justifying its rally this year, beating expectations across all key metrics as the business continues to grow at the fastest pace since the pandemic. 📈 Netflix added 9.33 million new subscribers, delivering its best subscriber growth since 2020 and nearly doubling analyst estimates. Its crackdown on password sharing is undoubtedly bearing fruit, and its strong content slate is enticing users. Importantly, those new subscribers are well and truly aiding Netflix’s top and bottom line, with earnings growing by more than 80% in the quarter. ⬆ Its advertising tier has also been a resounding success, targeting the more cost-conscious consumer effectively. This model will continue to support growth moving forward, and it is now in a healthy financial position to add new top-quality content, such as live sports. Netflix still has a huge target market and, therefore, a good growth runway if it continues to deliver.💰 The downside to the report was that its Q2 revenue forecast came in slightly weaker than expected, signalling that subscriber growth might be lower next quarter. Netflix also said it would stop reporting quarterly subscriber numbers from next year, a move that will likely disappoint investors who see it as a key metric each quarter. This may tarnish what was a stellar report overall, especially with Wall Street expectations extremely high. 😶 #Netflix #Earnings #Stocks
To view or add a comment, sign in
-
Historic: Netflix's stock is up nearly 400% since crashing 75% Can the Streaming Leader continue its impressive run ? Here's what you need to know 👇 2 years ago, Netflix was facing one of the most challenging times in 20+ year existence: 1) Rising interest rates were punishing Tech Stocks 2) Streaming Competition was heating up 3) Subscriber Growth was stalling The Stock Price dropped 75% in 7 months. Fast forward to today, it's up 400% and has recouped nearly all the losses. What happened ? 1) Consistently stronger than expected Subscriber Growth Netflix credits is crackdown on Password sharing and adding a cheaper tier with Ads as keys to success 2) Increased subscription costs Like most companies, Netflix is facing pressure to improve profitability while also dealing with higher costs (inflation). With a position as a Market leader (and a new cheaper Ad supporting tier), Netflix feels confident a price increase (despite economic conditions) won't affect its' subscriber base. 3) The Ad Supported Tier is not "Material" yet (ie: it hasn't had an impact on Income yet) Netflix is still building this part of the business, and if successful in attracting advertisers could be a $ multi-Billion Stream (more than offsetting the cheaper price of the Ad supporting tier). TLDR: Netflix is well positioned as the streaming market leader 1-Netflix's Content strategy 2-Mid-Long term success of the Ad supported Tier 3-Netflix's revenue diversification strategy. They have no shortage of Strategic (and complex) options for this last point going forward. From doubling down on Gaming, Advertising or new Tiers, this might be the key to success going forward. If you're interested in learning about the different kinds of Diversification Strategies, we're doing a Deep Dive in this Sunday's edition of The Greenline (including Key considerations for Investors) Drop by my profile and Subscribe through the "Subscribe to my Newsletter" button.
To view or add a comment, sign in
-
Netflix Inches Toward The $700 Milestone With Impressive Subscriber Surge, Could This Be The Break Investors Have Been Waiting For https://ift.tt/1apd4S5 Netflix is approaching its previous record high, nearing the significant $700 mark. The company has achieved a notable increase in subscribers, reporting approximately 269.6 million paid subscribers worldwide by the first quarter of 2024. Netflix demonstrated resilience, with its stock price surging by over 300% from a low of $162 in May 2022. read more via Benzinga - Stock Market Quotes, Business News, Financial News, Trading Ideas, and Stock Research by Professionals https://ift.tt/v2ESzNY June 21, 2024 at 12:15PM
Netflix Inches Toward The $700 Milestone With Impressive Subscriber Surge, Could This Be The Break Investors Have Been Waiting For https://ift.tt/1apd4S5 Netflix is approaching its previous record high, nearing the significant $700 mark. The company has achieved a notable increase in subscribers, reporting approximately 269.6 million paid subscribers worldwide by the first quarter of 2024....
benzinga.com
To view or add a comment, sign in
-
Only put off until tomorrow what you are willing to die having left undone. Netflix NFLX shares have hit a remarkable 52-week high, surging to a peak of $715.66 and closing at $704.32 on Sept. 19. This surge demonstrates the remarkable confidence in the market for Netflix's stock. The company's recent strategic moves and positive market indicators have left investors wondering whether now is the time to buy. With this milestone, it's important not to let the Fear of Missing Out (FOMO) hold you back. Seize the opportunity to invest in Netflix while it's at its peak. As a renowned Investment Advisor, I encourage you to consider adding Netflix to your investment portfolio. Investing in Netflix allows you to take advantage of the company's continued growth in the streaming industry. With a solid track record and an ever-expanding library of content, Netflix remains a dominant player in the market. By investing now, you position yourself to potentially benefit from future gains. Take control of your Health Savings Account (HSA) and use it as a tool for investing in companies that have the potential to grow. Investing in Netflix aligns with the themes of healthcare, wellness, and family entertainment, making it a fitting addition to your portfolio. Don't miss out on the opportunity to be part of Netflix's success story. Act now, invest wisely, and secure your financial future. #hsa #investing #healthcare #health #family #wellness 💪💰📈🎥
Netflix Stock Hits 52-Week High: Should You Buy or Wait for a Dip?
zacks.com
To view or add a comment, sign in
-
Netflix beats Wall Street Q2 forecasts, adds 8.1m global subs to reach 278m Netflix beat Wall Street revenue and other financial forecasts in the second quarter and blew past subscriber growth forecasts as it added 8.1m global paid members to reach 277.7m. Revenue of $9.6bn climbed 16.8% year-on-year, beating Bloomberg consensus estimates and Netflix guidance of $9.53bn and $9.49bn, respectively. Earnings per share of $4.88 increased 48% over Q2 2023, beating analysts’ forecasts of $4.74 and the company’s own guidance of $4.68.
Netflix beats Wall Street Q2 forecasts, adds 8.1m global subs to reach 278m
screendaily.com
To view or add a comment, sign in