Netflix shares soar after a record quarter fueled by hit content
Press Hub UCapital
Share:
Netflix stock surged by over 15% following the company’s stellar fourth-quarter results, driven by unprecedented subscriber growth and a lineup of hit content. With 19 million new paid users in the final quarter of 2024, the streaming giant shattered expectations and positioned itself for a historic valuation milestone.
Exceptional subscriber growth propels revenue
Netflix reported a remarkable addition of 19 million paid subscribers in Q4, nearly doubling projections of 9.8 million. The company now boasts a global subscriber base of 301 million, marking a 15% year-on-year increase. This surge was fueled by blockbuster content, including the second season of Squid Game, which garnered a record 68 million views in its first week, and the highly anticipated Mike Tyson vs. Logan Paul boxing match, streamed 65 million times.
Revenue for the quarter came in at $10.25 billion, surpassing Wall Street estimates of $10.1 billion. Earnings per share reached $4.27, slightly exceeding analyst expectations of $4.21. Looking ahead, Netflix forecasts 2025 revenue between $43.5 billion and $44.5 billion, above consensus estimates of $43.65 billion.
Price increases signal profit focus
As Netflix celebrates its record-breaking quarter, it also announced price increases in key markets, including the U.S., Canada, Portugal, and Argentina. The popular U.S. subscription tier will rise by $2.50 to $17.99 per month, while the ad-supported option increases by $1 to $7.99 per month. These adjustments reflect a strategic shift to prioritize revenue and profitability over subscriber volume.
Stock hits new heights
With shares up roughly 80% over the past 12 months, Netflix is on the cusp of achieving a historic valuation. The stock is set to open at nearly $1,000 per share, pushing its market capitalization beyond the $400 billion mark for the first time. In a letter to shareholders, Netflix emphasized its focus on long-term revenue growth and profit metrics, announcing it will no longer report subscriber figures starting in 2025.
Outlook for 2025
Netflix enters the new year with strong momentum, riding the wave of record net subscriber additions and a re-acceleration in growth. As the company pivots towards revenue and profitability, investors remain optimistic about its ability to maintain its dominance in the competitive streaming landscape. With a content strategy that continues to captivate audiences worldwide, Netflix is well-positioned to sustain its upward trajectory in 2025 and beyond.
Exceptional subscriber growth propels revenue
Netflix reported a remarkable addition of 19 million paid subscribers in Q4, nearly doubling projections of 9.8 million. The company now boasts a global subscriber base of 301 million, marking a 15% year-on-year increase. This surge was fueled by blockbuster content, including the second season of Squid Game, which garnered a record 68 million views in its first week, and the highly anticipated Mike Tyson vs. Logan Paul boxing match, streamed 65 million times.
Revenue for the quarter came in at $10.25 billion, surpassing Wall Street estimates of $10.1 billion. Earnings per share reached $4.27, slightly exceeding analyst expectations of $4.21. Looking ahead, Netflix forecasts 2025 revenue between $43.5 billion and $44.5 billion, above consensus estimates of $43.65 billion.
Price increases signal profit focus
As Netflix celebrates its record-breaking quarter, it also announced price increases in key markets, including the U.S., Canada, Portugal, and Argentina. The popular U.S. subscription tier will rise by $2.50 to $17.99 per month, while the ad-supported option increases by $1 to $7.99 per month. These adjustments reflect a strategic shift to prioritize revenue and profitability over subscriber volume.
Stock hits new heights
With shares up roughly 80% over the past 12 months, Netflix is on the cusp of achieving a historic valuation. The stock is set to open at nearly $1,000 per share, pushing its market capitalization beyond the $400 billion mark for the first time. In a letter to shareholders, Netflix emphasized its focus on long-term revenue growth and profit metrics, announcing it will no longer report subscriber figures starting in 2025.
Outlook for 2025
Netflix enters the new year with strong momentum, riding the wave of record net subscriber additions and a re-acceleration in growth. As the company pivots towards revenue and profitability, investors remain optimistic about its ability to maintain its dominance in the competitive streaming landscape. With a content strategy that continues to captivate audiences worldwide, Netflix is well-positioned to sustain its upward trajectory in 2025 and beyond.