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.
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.
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.
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** This article was prepared by BROKSTOCK analyst Maboko Seabi
