Netflix (NFLX) surged higher this week after delivering strong fourth-quarter results. The stock has nearly doubled in the past year, extending a winning streak that has made it one of the top performers in the tech-heavy sector.
The company reported significant growth across its key metrics. Paid memberships increased by 16% year-over-year to hit 301.63 million, with a record 18.91 million new members added last quarter. This outpaces the double-digit growth seen in the past six quarters. Global expansion continued to drive positive results, with U.S. and Canada revenue rising 15%, while Asia led the charge with a 26% jump.
Revenue surged 16% to $10.25 billion, exceeding expectations of $10.11 billion from analysts. Earnings per share (EPS) more than doubled to $4.27, well above the $4.20 consensus. The company’s ad-supported memberships also showed promise, with 55% of new sign-ups choosing this tier and sequential growth of 30% in paid memberships post a 35% jump in Q3.
Netflix raised prices in several regions earlier this month, including most U.S. plans and select international options like Canada, Portugal, and Argentina. Despite these hikes, the company remains confident in its ability to grow both its subscriber base and revenue through strategic pricing and its ad-supported model.
Looking ahead, Netflix now expects first-quarter 2025 revenue to grow more than 11% year-over-year, with EPS rising about 6% to $5.58. The company has also broadened its guidance, projecting revenue between $43.5 billion and $44.5 billion for the full year, up from a previous range of $42.5 billion to $44.5 billion.
The upcoming season highlights include “Monday Night Raw,” which will feature action-packed matches with commentary by The Rock and John Cena. Additionally, Netflix is introducing an option to add extra ad-supported members in 10 of its 12 international markets, further enhancing its ad network capabilities.
From a valuation standpoint, Netflix trades at a forward price-to-earnings (P/E) ratio of over 40 times analyst estimates for 2025—a premium but consistent with the company’s growth trajectory and market opportunity.
While the stock has reached elevated levels, analysts caution that valuations remain reasonable given Netflix’s strong performance and future potential. However, they also highlight the importance of patience as the company continues to build its global ad network.
For more details on Netflix’s Q4 results and full 2025 outlook, visit [source](#).
Source: https://www.fool.com/investing/2025/01/23/netflix-shares-jump-on-strong-subscriber-growth-is