Netflix has silently had a fantastic 2024.
Costco's membership crackdown may bring in a Netflix-style revenue lift. Morgan Stanley analysts say they've seen "surprising conversion rates" of shoppers paying the fee.
Netflix continues to grow rapidly, with a 35.5% stock increase since April, outperforming the S&P 500, yet I maintain a 'hold' rating due to valuation concerns. Q3 2024 saw record-breaking revenue of $9.82 billion and a subscriber base of 282.72 million, driven by strong regional performance and pricing strategies. Despite impressive growth and profitability, including a net profit jump to $2.36 billion, NFLX's high trading multiples make it a challenging buy for value investors.
Q3 revenue nearly hit $10 billion, with a 15% YoY growth rate and a significant leap in operating margin to almost 30%. Netflix's net profit margin TTM surpassed 20% for the first time, indicating significant dominance and an efficient business model. Improved cash flow from operations, with earnings quality reaching 100%, addresses previous concerns about Netflix's financial performance.
Two brothers who were convicted of killing their parents and featured in Netflix shows could be freed early after 34 years behind bars.
Costco's introduction of membership card scanners at the front of US stores is still rolling out, but the move is already paying off big for the wholesale club.
Costco's decision to install membership card scanners in U.S. stores could lead to the retailer's own version of a "Netflix moment," according to Morgan Stanley analysts.
Shares of the streaming pioneer have surged 57% this year.
Netflix continues to extend its lead as the world's largest streaming platform.
Investors might be surprised by the company's catalyst for growth hiding in plain sight.
Netflix's NFLX uptrend will continue because the company is still growing and outpacing forecasts. In 2024 and 2025, the company's growth will be driven by the increasing user base and rising engagement, and in 2026, ad sales will drive it.
Netflix seems to want to continue to make inroads into gaming, offering dozens of decently good mobile-focused titles on its service. But it wanted more, which is why it formed an internal studio (codename Blue) that was meant to make a AAA multiplatform game based on an original IP.