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Think It's Too Late to Buy Netflix? Here's the Biggest Reason Why There's Still Time.
NFLXNetflix(NFLX) The Motley Fool·2025-04-26 22:45

Core Viewpoint - Netflix's stock has reached a record high following strong first-quarter earnings, indicating continued growth potential for the company [1][2]. Group 1: Financial Performance - For the first quarter ending March 31, Netflix reported a 13% year-over-year revenue increase, with earnings per share (EPS) at an all-time high of 6.61,reflectinga256.61, reflecting a 25% increase from the previous year [1]. - The stock price has increased by 71% over the past year, suggesting strong market confidence in Netflix's future [2]. - For 2025, Netflix is targeting revenue between 43.5 billion and 44.5billion,whichrepresentsa1344.5 billion, which represents a 13% increase at the midpoint compared to 2024, with an expected operating margin of 29%, surpassing last year's 26.7% [7]. Group 2: Growth Drivers - Netflix is experiencing ongoing growth in new memberships, supported by gradual subscription price increases that enhance margins and earnings [3]. - The company has successfully scaled its advertising-supported tier, attracting a broader subscriber base and creating new revenue streams, with plans to leverage its proprietary adtech in the 600 billion global advertising market [5]. - The introduction of exclusive series, movies, and live events, such as boxing matches and WWE pro wrestling, has kept viewers engaged and contributed to subscriber retention [3].