Netflix Crushes Q3 Earnings
Netflix had a great third quarter in 2024, pushing the share price to a new record high of over $760. The company's strong performance was driven by its efforts to crack down on password sharing, introducing a cheaper ad-supported plan, and raising prices, all of which helped boost its earnings and revenue beyond what analysts were expecting.
Key Results:
● Revenue: $9.83 billion, higher than the expected $9.78 billion.
● Earnings per Share (EPS): $5.40, better than the estimated $5.16.
● Subscriber Additions: 5.07 million new users, beating the expected 4.5 million.
Looking Ahead:
Netflix expects even more growth in the fourth quarter due to exciting new content like "Squid Game Season 2” and the Jake Paul vs. Mike Tyson fight. The company is also working on improving its advertising business and expanding its ad technology. Netflix forecasts:
● Revenue Forecast: $10.13 billion, above the $10.01 billion forecasted by analysts.
● EPS Forecast: $4.23, well above analyst expectations of $3.90.
● Full-Year 2025 Revenue Target: Between $43 billion and $44 billion, which represents 11% - 13% potential growth.
Investor Confidence:
Investors are happy with Netflix's performance and believe in the company's future. Its ability to adapt to changes in the streaming environment, come up with new ideas, and deliver strong financial results has made it a leader in the industry. This latest earnings report suggests that Netflix is in a strong position to keep growing in the years to come.
Disclaimer:
*Any opinions, views, analysis or other information provided in this article is provided by BCS Markets SA trading as BROKSTOCK as general market commentary and should not be viewed as advice according to the FAIS Act of 2002. BCS Markets SA does not warrant the correctness, accuracy, timeliness, reliability or completeness of any information provided by third parties. You must rely upon your judgement in all aspects of your investment decisions and all decisions are made at your own risk. BCS Markets SA and any of its employees shall not be responsible for and will not accept any liability for any direct or indirect loss including without limitation any loss of profit which may arise directly or indirectly from use of the market commentary. The content contained within the article is subject to change at any time without notice. BCS Markets SA is an authorised financial services provider FSP No. 51404.
** This article was prepared by BROKSTOCK analyst Maboko Seabi
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