Netflix Inc. (NFLX)
Netflix is now using generative AI—but it risks leaving viewers and creatives behind
Netflix's recent use of generative AI to create a building collapse scene in the sci-fi show "El Eternauta" ("The Eternaut") marks more than a technological milestone. It reveals a fundamental psychological tension about what makes entertainment authentic.
Netflix: Current Growth Initiatives And FCF Expansion Does Not Justify Valuation Premium
In 2Q25, Netflix's revenue grew by 16% year-on-year to $11.08 billion. During this period, margins expanded substantially. Operating and net income grew by 45.02% and 45.55%. Despite its maturing business, NFLX's current initiatives, such as its local for local strategy and Netflix Houses, will continue to support the company's topline growth. Although competition intensified, NFLX has managed to defend its position and emerge as a FCF powerhouse. Currently, NFLX has a FCF margin of 20.37%, outperforming the industry average of 9.85%.
Netflix: Tremendous Performance, But A Selloff Was Overdue
I'm concerned about the overheated stock market and recommend rotating out of momentum winners like Netflix into safer assets. Despite Netflix's strong Q2 earnings, its stock fell, signaling investor fatigue with its high valuation and reliance on price hikes for growth. Netflix's modest underlying viewership and subscriber growth raise doubts about sustaining double-digit revenue growth without further price increases.
Netflix Earnings Summary: The Business Model Is Fine, It's P/E Compression That Is The Risk
Netflix reported a good quarter, with EPS and revenue beating estimates by +2% and fractionally, respectively, while operating income came in 3% ahead of the consensus. It also raised guidance for calendar 2025. Revisions post the July 17th earnings release for forward free cash flow estimates continue to track higher. Management addressed the heavily tilted back-half of 2024 releases which have skewed the company's operating margin, and they noted that while the operating margin guidance for NFLX was raised once again after the July 17th earnings release, the full-year operating margin will be higher than what was seen as of the Q2 '25 number.
1 Remarkable Stat That Highlights Just How Amazing Netflix Stock Has Been in Recent Years
Netflix (NFLX 0.00%) recently reported another strong quarter, a testament to the company's ability to continually innovate and find ways to grow. It has been successful in making its own movies and shows, offering ads, and cracking down on password sharing -- all moves that may not have been all that convincing when they were first announced.
Netflix is quietly searching for an exec to lead its video podcast efforts as it chases YouTube
Netflix is quietly searching for an exec to lead its video podcast efforts. The streamer is chasing YouTube, which has cemented itself as a video podcast titan.
Netflix: More Challenges As Streaming Competition Heats Up
The case for underperformance at Netflix is clear. Netflix has done a big buyback of stock. But it has also lost 10% of its customers since 2022. Mainstream competitors continue to make a big impact.
Netflix Stock Ready to Move Back Toward Record Peak
Netflix Inc (NASDAQ:NFLX) stock was last seen down 0.9% at $1,165.72, trading at its lowest level since May 15 and on track for its third-straight daily loss, as well as its fourth consecutive week in the red.
Despite Excellent Capital Allocation Decisions, Netflix Seems Fairly Valued
Netflix's long-term capital allocation strategy—prioritizing organic growth, global content investment, and avoiding dilutive acquisitions—has driven exceptional shareholder returns. International expansion and local content production have fueled robust global revenue growth, with non-English titles now a significant part of total viewing hours. Management's discipline in limiting share dilution and focusing on buybacks has preserved shareholder value, with only modest dilution since the IPO.
Netflix Is Printing Money (Rating Upgrade)
Netflix delivered robust Q2 results with strong revenue, record EPS, and exceptional free cash flow, showcasing operational excellence and business strength. Profitability metrics, including operating margin and return on equity, hit multi-year highs, reflecting consistent efficiency improvements and enhanced shareholder returns. Valuation seems justified, with the P/E ratio now reflecting fair value given Netflix's profitability and raised guidance, supporting a more bullish stance.
Netflix Using Video Generation Startup Runway AI
Netflix has begun using video generation software from startup Runway AI and Walt Disney is also testing out Runway's technology. Bloomberg's Rachel Metz discusses the promises and risks of this controversial technology in Hollywood on “Bloomberg Tech.
Step Aside Magnificent 7! These Fortunate 3 Stocks are The New Market Leaders
The Magnificent Seven group of tech stocks, as a whole, may still be fantastic long-term bets.
