Netflix continues to dominate the streaming industry with strong earnings and subscriber growth

From Nasdaq: 2024-07-20 10:05:58

Netflix continues to dominate the streaming industry with strong Q2 earnings, adding 8 million net subscribers. They expect operating margins to reach 26% by 2024. Stock has surged 30% this year, outperforming the S&P 500. Can the growth momentum continue into 2025?

In Q2, Netflix beat revenue expectations with $9.6 billion, up 17% YoY. Earnings per share were $4.88, a 48% YoY increase. The company now has 277.6 million subscribers, exceeding analyst estimates. Will the growth trajectory sustain into the future?

Netflix’s strong performance surprises skeptics, outpacing rivals like Disney. Ad-supported plans drive growth, with a 34% sequential increase in Q2. The company expects revenue diversification through ads by 2026 and plans live streaming and gaming expansions. Is Netflix stock overvalued at a 33.4x NTM P/E ratio?



Read more at Nasdaq: Netflix Stock 2025 Forecast: Can NFLX’s Growth Momentum Continue?