๐ก๐ฒ๐๐ณ๐น๐ถ๐ ๐๐ฒ๐น๐ถ๐๐ฒ๐ฟ๐ ๐๐น๐ผ๐ฐ๐ธ๐ฏ๐๐๐๐ฒ๐ฟ ๐๐ฎ๐ฟ๐ป๐ถ๐ป๐ด๐ - ๐ฎ๐ฏ ๐๐ฎ๐ป ๐ฎ๐ฌ๐ฎ๐ฑ
Hey everyone, we start getting earnings results this week starting with $NFLX (Netflix, Inc.) โ who absolutely smashed expectations with their Q4 2024 earnings! Letโs break it down:
๐ ๐ฅ๐ฒ๐ฐ๐ผ๐ฟ๐ฑ ๐ฆ๐๐ฏ๐๐ฐ๐ฟ๐ถ๐ฏ๐ฒ๐ฟ ๐๐ฟ๐ผ๐๐๐ต
Netflix added 18.9 million new subscribers this quarter, pushing their total membership past 300 million. Thatโs the kind of growth we havenโt seen since the pandemic days in 2020.
๐ฐ ๐ฆ๐๐ฟ๐ผ๐ป๐ด ๐๐ถ๐ป๐ฎ๐ป๐ฐ๐ถ๐ฎ๐น๐
๐ฅ๐ฒ๐๐ฒ๐ป๐๐ฒ: $10.25 billion (+16% YoY)
๐๐ฃ๐ฆ: $4.27 (beating estimates)
Netflix is also projecting 2025 revenues to exceed estimates, so theyโre feeling pretty confident about whatโs ahead.
๐ฅ ๐ช๐ต๐ฎ๐โ๐ ๐๐ฟ๐ถ๐๐ถ๐ป๐ด ๐๐ต๐ฒ ๐๐๐ฝ๐ฒ?
๐๐ผ๐ป๐๐ฒ๐ป๐: Hits like Squid Gameโs return, live NFL games, WWE and even a Mike Tyson boxing event have been a major draw.
๐ฃ๐ฟ๐ถ๐ฐ๐ฒ ๐๐ถ๐ธ๐ฒ๐: They bumped up subscription prices in several regions, which should help fuel future investments in content.
๐๐ฑ๐ ๐ฎ๐ฟ๐ฒ ๐ช๐ผ๐ฟ๐ธ๐ถ๐ป๐ด: Over 55% of new sign-ups are going for the ad-supported tier. Itโs a clever way to bring in more users and diversify their revenue. Netflix would probably even prefer to convert some premium paying accounts to switch to the lower priced add tier, since they make more from the add supported tiers from a business model perspective - in the end, advertising always wins.
๐ After the announcement, Netflixโs stock surged 14% and is now up about 80% over the past yearโway ahead of the S&P 500โs 25% gain.
๐ง๐ต๐ฒ ๐ฃ๐ผ๐๐ฒ๐ฟ ๐ผ๐ณ ๐๐ผ๐ป๐ด-๐ง๐ฒ๐ฟ๐บ ๐๐ป๐๐ฒ๐๐๐ถ๐ป๐ด
Netflix stock is not cheap, currently trading at high valuations, so is the wider market, so always keep in mind that even though the future looks good, if the market takes a downturn, highly valued stocks will take a larger hit.
๐๐ฒ๐ฟ๐ฒโ๐ ๐๐ผ๐บ๐ฒ๐๐ต๐ถ๐ป๐ด ๐๐ผ ๐๐ต๐ถ๐ป๐ธ ๐ฎ๐ฏ๐ผ๐๐: rewind to 2022. Netflixโs stock price collapsed by over 70% at its lowest point after disappointing subscriber numbers and intense competition. Back then, plenty of analysts were saying this was the beginning of the end for Netflix. The idea that the stock would ever recover seemed almost laughable to some.
But here we are, just a couple of years later, and Netflix isnโt just backโtheyโre breaking records and thriving in the streaming wars. For those who stayed patient and held onto their investments, the reward has been massive. This is why long-term investing matters. Companies can go through tough patches, but if the fundamentals are strong and the strategy is sound, patience often pays off.
Best,
Reinhardt.... Show More
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Fri Dec 05 2025 11:50:56 GMT+0000 (Coordinated Universal Time)
