Tech giant's share skyrockets, hitting new peak by 14%
Revamped Report:
Streaming Giant Netflix Cruises Ahead, Leaving Investors in Awe
Netflix, the streaming colossus, has rocked the financial world with its mind-boggling quarter four earnings of 2024. The stock's trajectory is skyward, inching ever closer towards the storied $1000 mark. But should investors hop on this bandwagon now? Buckle up as we delve into the details.
The Q4 earnings report punched well above expectations, leaving Wall Street experts bemused. Netflix reported an EPS of $4.27, a jaw-dropping surge from $2.15 in 2023. Analysts had estimated a mere $4.21. Meanwhile, revenue sailed past the predicted $10.11 billion, landing at $10.2 billion, up from $8.83 billion in the previous year.
Subscription Frenzy
Netflix's Christmas quarter witnessed a staggering 19 million new subscribers, eclipsing the impressive growth witnessed during the early COVID-19 phase (15 million). As a result, over 300 million households worldwide now enjoy Netflix's entertainment extravaganza.
Driving this growth are compelling factors like live sporting events and the blockbuster second season of the acclaimed South Korean series "Squid Game." Netflix hints at a third season to drop later in 2025, while bankrolling plans for expanded live events, such as the 2027 Women's Football World Cup. Interestingly, Netflix has dropped the tradition of publishing user numbers.
Time to Invest?
The stock market has embraced these figures with open arms. Post-earnings, the Netflix stock soared by over 14% to approximately $995, teetering on the edge of the $1000 threshold. This surge could generate additional momentum.
However, investors might lament having missed this golden entry point. In the long run, the Netflix stock shows substantial potential. Over the past two years, it has stood tall as one of the powerhouses in the Nasdaq 100, defying competition and skepticism about its market standing.
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Netflix (WKN: 552484)
Investors are left questioning whether they should venture into the booming stock-market landscape of Netflix after the tech giant's impressive Q4 earnings, which cruised past Wall Street's predictions, and sent the stock soaring towards the $1000 mark. The lightning-fast growth of Netflix is attributed to an increased focus on technology-driven ventures, such as live sporting events and popular series like "Squid Game."
