Netflix is firing on all cylinders, but should the all-time-high stock price give investors pause?Streaming giant Netflix (NFLX 11.09%) has one of the most followed earnings releases. It gets more-than-average attention because Netflix reports early in each earnings cycle, but it also gets notice because it's a huge, consumer-facing company that many investors also likely subscribe to.When the company's third-quarter 2024 results were released after the market closed on Thursday, investors liked what they s ...

I'm specialized in fundamental equity research, global macro strategy, and top-down portfolio construction. I graduated from UCLA with a degree of Business Economics and UMich Ross School of Business with a Master of Accounting. I'm a senior analyst at a multi-strategy hedge fund. In my opinion, HODL can't generate significant alpha or maintain a high Sharpe ratio over the long run. Seeking Alpha requires active management and minimizing opportunity costs. Investors should understand seeking a high positive ...

Wall Street loved Netflix's Q3 earnings. Should you?The streaming wars have been raging for years now, with some of the world's biggest companies fighting for eyeballs. Amazon, Apple, and others are duking it out, spending billions pumping out content in an attempt to capture market share. The war is expensive. Although direct financial and viewership data is hard to pin down -- many companies fold their TV divisions into larger segments -- it's clear that the economics aren't working for many.Few companies ...

Retirement is complicated and you only get once chance to do it right. Don't miss out because you didn't know what was out there.The Retirement Forum provides actionable ideals, a high-yield safe retirement portfolio, and macroeconomic outlooks, all to help you maximize your capital and your income. We search the entire market to help you maximize returns.Netflix (NASDAQ: NASDAQ: NFLX ) went up by double-digits to a market capitalization of $330 billion. We discussed our opinion a few months ago about how t ...

Netflix (NASDAQ: NFLX ) is the global leader in streaming video on-demand or SVOD. The firm now has more than 280 million global subscribing households and reaching a total likely audience of over 600 million.Professional equity portfolio manager for a boutique buy-side asset manager.My focus is on finding high-quality companies, applying a disciplined approach to valuation and identifying underappreciated opportunities. My goal is to identify opportunities in cash-rich companies with strong balance sheets ...

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Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

Key TakeawaysThe S&P 500 added 0.4% on Friday, Oct. 18, wrapping up a week of trading that included an initial wave of quarterly earnings releases from major companies.Netflix shares surged after the streaming giant reported better-than-expected third-quarter sales, profits, and subscriber numbers.Shares of grain processors Bunge and Archer-Daniels-Midland lost ground after an analyst said low crop prices and weak farmer sentiment weighed on the agriculture industry. Major U.S. equities indexes moved higher ...

Streaming Revenues and Membership Growth - Streaming revenues increased by 15% to $9.82 billion in Q3 2024 compared to $8.52 billion in Q3 2023[103] - Paid memberships grew by 14% to 282.72 million at the end of Q3 2024, up from 247.15 million in Q3 2023[103] - UCAN region streaming revenues increased by 16% to $4.32 billion in Q3 2024, with average monthly revenue per paying membership up 5% to $17.06[108] - EMEA region streaming revenues grew by 16% to $3.13 billion in Q3 2024, with paid memberships increasing by 15% to 96.13 million[112] - Streaming revenues increased by $1.33 billion (17%) year-over-year to $9.10 billion for the nine months ended September 30, 2024[113] - Paid memberships grew by 12,371 (15%) to 96,131 at the end of the period compared to the previous year[113] - Latin America streaming revenues increased by $98.08 million (9%) in Q3 2024 compared to Q3 2023, despite a net membership loss of 68[116] - Asia-Pacific streaming revenues grew by $179.65 million (19%) in Q3 2024, with paid net membership additions increasing by 399 (21%)[119] - Paid net membership additions in Asia-Pacific surged by 2,862 (65%) year-over-year for the nine months ended September 30, 2024[120] Operating Income and Margins - Operating income rose by 52% to $2.91 billion in Q3 2024, with operating margin improving to 29.6% from 22.4% in Q3 2023[103] Membership Revenue and Growth by Region - Average monthly revenue per paying membership remained flat at $11.69 in Q3 2024 compared to $11.70 in Q3 2023[103] - UCAN region paid net membership additions decreased by 60% to 694,000 in Q3 2024 compared to 1.75 million in Q3 2023[108] - EMEA region paid net membership additions fell by 45% to 2.17 million in Q3 2024 compared to 3.95 million in Q3 2023[112] - Average monthly revenue per paying membership decreased by $0.49 (6%) in Asia-Pacific for the nine months ended September 30, 2024[120] - Constant currency change in Latin America showed a significant 27% increase in Q3 2024 compared to Q3 2023[116] Costs and Expenses - Cost of revenues increased by $863.22 million (6%) year-over-year, primarily due to a $697 million increase in content amortization[124] - Marketing expenses rose by $200.08 million (11%) year-over-year, driven by a $98 million increase in advertising expenses[127] - Technology and development expenses increased by $146.37 million (7%) year-over-year, mainly due to higher personnel-related costs[131] - General and administrative expenses decreased by $61.2 million (13%) in Q3 2024 compared to Q3 2023, primarily due to a $38 million decrease in personnel-related costs and a $24 million decrease in third-party expenses[133] - General and administrative expenses decreased by $32.6 million (3%) for the nine months ended September 30, 2024, compared to the same period in 2023, driven by a $27 million decrease in personnel-related costs[134] Interest and Taxes - Interest expense increased by $9.3 million (5%) in Q3 2024 compared to Q3 2023, primarily due to an increase in debt[136] - Interest and other income (expense) decreased by $189.9 million (113%) in Q3 2024 compared to Q3 2023, primarily due to foreign exchange losses of $91 million[139] - Interest and other income increased by $88.7 million (72%) for the nine months ended September 30, 2024, compared to the same period in 2023, primarily due to foreign exchange gains of $24 million[140][142] - Provision for income taxes increased by $107.8 million (47%) in Q3 2024 compared to Q3 2023, with an effective tax rate of 13%[144] - Provision for income taxes increased by $401.3 million (68%) for the nine months ended September 30, 2024, compared to the same period in 2023, with an effective tax rate of 13%[145] Cash Flow and Investments - Cash, cash equivalents, restricted cash, and short-term investments increased by $2.1 billion (29%) as of September 30, 2024, compared to December 31, 2023[146] - Short-term and long-term debt increased by $1.4 billion (10%) as of September 30, 2024, compared to December 31, 2023[146] - The company repurchased 8,696,108 shares of common stock for $5.3 billion during the nine months ended September 30, 2024, with $3.1 billion remaining available for repurchases[147] - Net cash provided by operating activities for Q3 2024 increased by $329 million (17%) compared to Q3 2023, driven by a $686 million (41%) increase in net income and favorable working capital changes[152] - Payments for content assets in Q3 2024 increased by $890 million (28%) to $4.1 billion compared to Q3 2023[152] - Net cash used in investing activities for Q3 2024 decreased by $2.165 billion (731%) compared to Q3 2023, primarily due to $1.7 billion in investment purchases[152] - Net cash provided by financing activities for Q3 2024 increased by $2.702 billion (109%) compared to Q3 2023, driven by $1.794 billion in debt issuance and an $800 million decrease in stock repurchases[152] - Net cash provided by operating activities for the nine months ended September 30, 2024 increased by $213 million (4%) compared to the same period in 2023, driven by a $2.373 billion (53%) increase in net income[154] - Payments for content assets for the nine months ended September 30, 2024 increased by $2.774 billion (29%) to $12.434 billion compared to the same period in 2023[154] - Net cash used in investing activities for the nine months ended September 30, 2024 decreased by $2.153 billion (1,654%) compared to the same period in 2023, primarily due to $1.7 billion in investment purchases[154] - Net cash used in financing activities for the nine months ended September 30, 2024 decreased by $103 million (3%) compared to the same period in 2023, driven by $1.794 billion in debt issuance and a $412 million increase in stock issuance[154] - As of September 30, 2024, the company had $16.1 billion of debt, consisting of fixed-rate unsecured debt in fifteen tranches due between 2025 and 2054[159] Foreign Exchange Impact and Hedging - Foreign exchange rate fluctuations negatively impacted revenues by approximately $476 million in Q3 2024[103] - Foreign currency-denominated revenues accounted for 56% of total revenue for the nine months ended September 30, 2024, with operating expenses in foreign currencies accounting for 30%[160] - Foreign currency-denominated revenue accounted for 56% of total revenue for the nine months ended September 30, 2024[160] - Foreign currency-denominated operating expenses accounted for 30% of total operating expenses for the nine months ended September 30, 2024[160] - Unfavorable foreign exchange rate impact reduced revenue by approximately $1,177 million for the nine months ended September 30, 2024[160] - A 10% weakening of the U.S. dollar would have decreased AOCI by approximately $1.9 billion as of September 30, 2024[160] - A 10% strengthening of the U.S. dollar would have decreased AOCI by approximately $133 million as of September 30, 2024[160] - A 10% adverse change in exchange rates would have decreased income before taxes by approximately $22 million as of September 30, 2024[163] - The company uses foreign exchange forward contracts to mitigate fluctuations in forecasted U.S. dollar-equivalent revenues[160] - The company designates foreign exchange forward contracts as cash flow hedges to offset foreign currency risks[160] - Non-derivative instruments are used to mitigate foreign exchange risk related to net investments in foreign subsidiaries[160] - The company began entering into foreign exchange forward contracts to mitigate foreign exchange risk on intercompany transactions in 2024[160] Discontinued Services - The company discontinued its DVD-by-mail service in September 2023, resulting in a $22.36 million revenue loss in Q3 2024[103]

Netflix ((NFLX) stock is making new record highs today on the back of a strong quarterly earnings report. Earnings per share of $5.40 beat estimates of $5.12 and revenue of $9.83 billion beat estimates of $9.77 billion. Most notably, Netflix added 5.07 million subscribers last quarter, well above the forecast of 4 million.When it comes to streaming services, Netflix and Amazon’s ((AMZN) Prime Video are neck and neck for the top spot, each commanding a 22% share of the market. However, the business models ha ...