Netflix: acclaimed after solid quarterly results

(CercleFinance.com) - Netflix jumps 12% in early Wall Street trading, buoyed on the heels of an "almost flawless" quarterly release with 19 million net subscribers gained, the highest number of net additions in the company's history, according to Jefferies.


We were encouraged to learn that no single program was responsible for this outperformance, which makes us more confident in the trajectory of subscriptions", adds the broker, who reaffirms his "buy" recommendation and raises his target to $1,200.

The video streaming platform doubled its EPS to $4.27 for the fourth quarter of 2024, with operating margin improving by more than five points to 22.2% on revenues up 16% to over $10.2 billion.

In terms of outlook, Netflix raised its operating margin forecast for 2025 by one point to 29%, and its annual revenue target range by $0.5 billion to between $43.5 and $44.5 billion.

While massive subscriber growth was the main driver in 2024, Wedbush expects price increases to drive revenue growth in 2025, and advertising to take revenues to a higher level in 2026.

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