Netflix Inc.’s stock price jumped nearly 10% on Wednesday, reaching an all-time high as analysts praised the company’s fourth-quarter earnings results. The streaming giant reported a whopping 18.9 million new users in the quarter, surpassing expectations and marking its biggest quarterly subscriber gain ever.
Netflix’ Q4 revenue and earnings also exceeded analyst estimates, with revenue rising 16% year-over-year to $10.25 billion. Diluted earnings per share (EPS) rose to $4.27, well ahead of consensus expectations.
The company’s stock buyback program was announced, with a total value of $15 billion. Netflix now projects full-year revenue between $43.5 billion and $44.5 billion for 2025, surpassing previous estimates.
Analysts praised the company’s ability to monetize its member base through advertising and price increases. However, ad revenue is not expected to become a primary driver until 2026.
The company’s live events business also performed well, with analysts encouraged by its commentary on the lack of one particular title driving subscriber growth. Netflix co-CEO Greg Peters stated that live events accounted for a minority of new customers in the quarter.
Netflix expects to expand operating margins to 28.2% in the first quarter and plans to continue doubling down on sports programming. The company is also exploring potential bids on UFC rights next year.
Source: https://finance.yahoo.com/news/netflix-stock-secures-all-time-closing-high-as-wall-street-cheers-near-flawless-earnings-212022040.html