Dear Copiers
Earning Season has started with a bang for us thanks to $NFLX (Netflix, Inc.) fantastic earnings report last night which sent the stock up around 15%.
Here are the key take aways that are driving the share price up.
Netflix added a record 19 million new subscribers and have now over 300 million paid subscribers. As a longtime holder of Netflix I am so aware how this number really affects how the market responds. When they disappoint the stock will absolutely tank but when they have a strong (and unexpected) increase in sub numbers the stocks takes-off like we are seeing currently on the overnight chart.
Netflix in many ways is an easy stock for me to invest in as it is something I use in my everyday life. I am very aware of how it’s shows are doing which therefore gives me an indication of how Netflix is executing as a company. I am not surprised with these results because I find they have so many good shows and even the ones I don’t watch are also doing well like their Live Sports.
Netflix reported that of the $650 billion global entertainment market they have an audience 700 million globally and of that 300 million are paying subscribers showing that while their numbers are good there is still plenty more market share to capture.
Netflix also announced a $15 billion stock buyback which is something that investors usually like as this can increase the stock price in the near term by reducing the number of outstanding shares.
So, in a nutshell, thanks to the big up take in subscribers and their new subscription models (such as crack down on password sharing) revenue rose by 16 percent reaching to $39 billion and forecast was strong at around $44.5 billion vs expected $44 billion.
Thanks Lena
22/01/2025
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