Netflix (NFLX) stock surged over 14% in after-hours trading Tuesday following its Q4 earnings report, which saw a record-breaking 18.9 million subscribers added to the platform. The company also announced a $15 billion stock buyback and increased its full-year revenue outlook to $43.5-44.5 billion.
The streaming giant’s strong subscriber gains were driven by a combination of factors, including its live events offerings such as the “Jake Paul vs. Mike Tyson” boxing match and NFL games. Netflix attributed its success to its focus on delivering special event programming rather than securing large regular season sports packages.
Revenue reached $10.25 billion in Q4, beating consensus estimates of $10.11 billion. Diluted earnings per share (EPS) also exceeded expectations, with the company reporting EPS of $4.27. Operating margins were 22.2% in Q4 and 27% for full-year 2024.
Netflix plans to raise prices across most plans in the US, Canada, Portugal, and Argentina, with price hikes ranging from $1 to $3 per plan. The company will continue to double down on sports programming and may bid on UFC rights next.
The strong quarterly performance comes as Netflix navigates a competitive market with formidable competitors in traditional entertainment and big tech. Despite this, the company remains confident in its product/market fit, citing its focus and continued investment as key factors in its success.
Source: https://finance.yahoo.com/news/netflix-stock-soars-after-subscriber-growth-blows-away-forecasts-company-announces-more-price-hikes-210734109.html