The popular South Korean drama "Squid Game" will return to Netflix on June 27 for a third and final season, the streaming platform announced during its "Next on Netflix" event on Thursday.
Netflix stock is up 115% versus the S&P 500's gain of 31% since our buy-call on the thesis that the company has a strong grip on pricing power. We expect management is in-route to pull another triple-digit outperformance in FY25. The new price hikes, coupled with its high-quality original content, should reel in better-than-expect top-line growth in FY25, specifically with its new method of reporting.
Despite the choppy start to the year, fourth-quarter earnings season has been encouraging for investors and companies alike.
Netflix is expanding its presence in the toy business, striking its first master licensing deal with the company behind the popular Squishmallows plush toys to develop a product line inspired by its hit science-fiction series “Stranger Things.”
It can be difficult to find great stocks. After all, there are more than 4,000 public companies listed on just the New York Stock Exchange and the Nasdaq.
In this podcast, Motley Fool analyst Jim Gillies and host Dylan Lewis discuss:
For more than two years, the bulls have been an unstoppable force on Wall Street. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite rose by 13%, 23%, and 29%, respectively, in 2024, with all three indexes notching multiple record-closing highs.
Netflix's Q4 earnings beat expectations, with strong subscriber growth reaching over 300 million, driving a surge in stock price close to $1000 at the time of reporting. Despite trimming my short-term position, I maintain a long-term hold on Netflix due to its immense scale, pricing flexibility, and advertising potential. Concerns include flat free cash flow, high valuation metrics, and potential risks from content costs and slower subscriber growth.
I have been bullish on Netflix since 2017, recommending it at $181, and it has shown remarkable growth, now nearing $1,000. Netflix's subscriber base continues to grow, with over 300 million globally, and is projected to reach 500 million within five years. Free Cash Flow analysis shows Netflix as a strong performer, generating $0.60 in FCF for every dollar invested, indicating robust future earnings growth.
Netflix's Q4 FY24 earnings report showed impressive growth, with revenue up 16% YoY and operating income jumping 52%, validating my bullish thesis. Multiple growth drivers, including a booming ad business, live events, and a strong content slate, support Netflix's sustained momentum through 2025 and beyond. Despite high valuation metrics, Netflix's superior operational performance, expanding margins, and strong cash generation justify taking calculated risks at current price levels.
Netflix's Q4 earnings report and outlook for the coming year prove that Netflix continues to be the leader in streaming by a long shot. The company's focus on original content and user engagement, including live sports and popular original content shows, is paving its way to maintaining and expanding its streaming market leadership. I expect Netflix's shift from subscriber growth to engagement metrics and ad revenue to drive 2025 top-line growth, with more weight on the latter.
Video streaming giant Netflix (NFLX -0.58%) recently reported a blowout fourth quarter thanks to strong subscriber growth, proving the company can continue to lead a saturated streaming market. The stock surged roughly 10% immediately following the news, and Netflix now has a nearly $415 billion market cap.