Netflix Soars to All-Time High as Earnings Beat Expectations
NFLX +1.19%
Key Points:
* Netflix (NFLX) stock surged nearly 10% to an all-time high on Wednesday.
* The company reported strong Q4 earnings, with revenue and earnings exceeding estimates.
* Netflix added a record 18.9 million subscribers in Q4.
* The streaming giant announced a $15 billion stock buyback and boosted its full-year revenue outlook.
* Netflix implemented price hikes ranging from $1 to $2 across its subscription tiers.
Wall Street Praise
"Q4 results were near flawless," said Jefferies analyst James Heaney.
Pivotal Research raised its price target from $1,000 to $1,250 — the highest on Wall Street.
Subscriber Growth
Netflix exceeded Wall Street's subscriber growth expectations, adding 18.9 million users in Q4 2024.
Revenue and Earnings
* Revenue: $10.25 billion (beat estimates of $10.11 billion)
* Earnings per share: $4.27 (beat estimates of $4.18)
Revenue Outlook
Netflix projects 2025 revenue between $43.5 billion and $44.5 billion, ahead of previous estimates.
Price Hikes
* Ad-supported plan: $7.99 (up from $6.99)
* Standard, ad-free tier: $17.99 (up from $15.49)
* Premium plan: $24.99 (up from $22.99)
Live Events
Netflix attributed its subscriber growth to a variety of factors, including live events such as:
* Jake Paul vs. Mike Tyson boxing match
* NFL games
* Return of "Squid Game"
The company emphasized that its live events strategy focuses on "can't-miss, special event programming" rather than regular season sports packages.
Other Metrics
* Operating margins: 22.2% in Q4 2024
* Full-year 2024 operating margins: 27%
* Q1 2025 operating margin guidance: 28.2%