Netflix Stock Soars After Stellar Q4 Earnings
Key Highlights:
* NFLX closed at an all-time high, up nearly 10% on Wednesday.
* Streaming giant reported 18.9 million new users in Q4, beating expectations.
* Revenue ($10.25 billion) and earnings per share ($4.27) surpassed estimates.
* Pivotal Research raised its price target to $1,250, the highest on the Street.
* Netflix announced a $15 billion stock buyback and increased its full-year revenue guidance.
* Subscribers surged due to NFL games, the "Jake Paul vs. Mike Tyson" fight, and the return of "Squid Game."
* The company raised prices for its ad-supported, Standard, and Premium plans.
* Revenue increased by 16% year-over-year, fueled by strong subscriber growth and ad revenue.
* Live events, including the NFL and WWE Raw, contributed to the subscriber surge.
* Netflix expects Q1 revenue to reach $10.42 billion, slightly below estimates.
* Operating margins expanded to 22.2% in Q4 and are projected to reach 28.2% in Q1.
* Analysts remain optimistic about Netflix's ability to monetize its user base through advertising and price increases.