Netflix Stock Soars to Record High on Strong Earnings, Subscriber Gains
Key Highlights:
* Netflix (NFLX) stock surged nearly 10% on Wednesday, reaching an all-time high closing price.
* Exceptional Q4 Results:
* 18.9 million new subscribers, a record quarterly gain.
* Revenue and earnings surpassed analyst estimates.
* Strong Revenue Guidance:
* Full-year revenue projected between $43.5 billion and $44.5 billion, exceeding previous estimates.
* Price Hikes Introduced:
* Ad-supported plan increased to $7.99 from $6.99.
* Standard tier now $17.99 from $15.49.
* Premium plan raised to $24.99 from $22.99.
* Advertising Boom:
* Advertising revenue doubled in 2024 and expected to double again in 2025.
* Ad revenue not expected to drive primary revenue until 2026.
* Live Events Catalyst:
* NFL games and "Jake Paul vs. Mike Tyson" boxing match contributed to subscriber gains.
* Company emphasizes "can't-miss" special event programming.
* Financial Metrics:
* Q4 revenue: $10.25 billion, beating consensus estimates.
* Q4 diluted EPS: $4.27, exceeding expectations.
* Operating margins: 22.2% in Q4, 27% for full-year 2024.
* Competitive Landscape:
* Netflix acknowledges intense competition in the industry.
* Company's focus and investment in product and market fit cited as key strengths.
Additional Insights:
* Analysts praise Netflix's "near flawless" Q4 performance.
* Stock has surged approximately 100% year over year.
* Company announces $15 billion stock buyback.
* Rumors suggest Netflix may bid on UFC rights next.