Core Insights - The article discusses the author's investment strategy and portfolio, highlighting a focus on a diverse range of stocks and the intention to provide unique insights to other investors [1]. Company and Industry Summary - The author holds a beneficial long position in shares of major companies such as Google (GOOG) and Amazon (AMZN), indicating confidence in their future performance [2]. - The analysis emphasizes the importance of conducting personal in-depth research and due diligence before making investment decisions, acknowledging the inherent risks involved [3].

Core Viewpoint - High-quality companies like Netflix create significant long-term value, leading to soaring stock prices that may hinder retail investors from buying in [1] Company Performance - Netflix's share price is nearing $1,000 following strong financial results for 2024, with 18.9 million new subscribers added in Q4 2024, surpassing Wall Street's forecast of 8.2 million [3][6] - The total subscriber base reached a record high of 301.6 million, reinforcing Netflix's position as the leading streaming platform, far ahead of Disney+ with 122 million subscribers [3] - Netflix's total revenue for 2024 was a record $39 billion, reflecting a 15.7% increase from the previous year, accelerating from 6.6% growth in 2023 [6] Advertising Revenue - The introduction of an advertising subscription tier in 2022 has significantly contributed to Netflix's growth, with the ad tier accounting for 55% of new signups in available countries [4][5] - Advertising revenue doubled in 2024 compared to the prior year, with expectations to double again in 2025 [6] Earnings and Valuation - Netflix's earnings per share (EPS) increased by 64.8% to an all-time high of $19.83, showcasing the company's scale advantages [7] - The stock trades at a price-to-earnings (P/E) ratio of 49.6, below its five-year average of 51.6, with forecasts suggesting EPS could grow to $24.69 in 2025, leading to a forward P/E of 39.9 [12][13] Future Growth Potential - Netflix plans to invest a record $18 billion in content for 2025 to maintain its competitive edge, with only 6% penetration of its $650 billion global addressable market [11] - Live programming, including exclusive NFL games and a contract with TKO Sports for WWE content, is expected to enhance user engagement and advertising revenue [8][10] Stock Split Consideration - Given the high stock price and potential for further increases, a stock split may be likely in 2025, potentially a 10-for-1 split to make shares more accessible to retail investors [14][15][16]

Core Insights - Netflix has achieved a remarkable 1,500% increase in stock price over the past decade, with shares currently at all-time highs [1] - The company added a record 18.9 million net-new subscribers in Q4 2024, bringing the total to 301.6 million customers globally [1][2] Group 1: Market Position and Strategy - Netflix's first-mover advantage has allowed it to dominate the streaming industry by investing heavily in content, technology, and marketing while competitors focused on traditional cable [2] - The company has shifted its strategy by introducing an ad-supported subscription tier, which has seen significant success with a 30% quarter-over-quarter increase in ad members in Q4 [4][5] Group 2: Financial Performance - In 2024, Netflix reported an operating margin of 27%, a substantial increase from 13% in 2019, with expectations to reach 29% in 2025 [3] - The ad revenue has doubled year-over-year, with forecasts indicating it will double again in 2025, showcasing strong monetization of both ad-supported and ad-free plans [6] Group 3: Future Growth Opportunities - Netflix is expanding into live events, securing contracts for NFL games and the FIFA Women's World Cup, which is expected to drive additional ad revenue [7] - The market remains optimistic about Netflix's growth potential, but investors should consider the current valuation, with a forward P/E ratio of 39.6, which is 46% higher than the Nasdaq-100 index [9][10]

Netflix (NFLX -0.74%) dazzled investors with its Q4 2024 earnings report on Jan. 21. The streaming leader blew past expectations for subscriber growth, posting record additions of 18.9 million, well above the analyst consensus of 9.8 million. Subscriber growth was also broad-based with the company adding at least 4 million subscribers in all four of its regions, showing its popularity around the world.Growth was driven by content, including Netflix's successful experiment with live events like the Jake Paul ...

Company Overview - Netflix Inc (NASDAQ: NFLX) is an American subscription video-on-demand over-the-top streaming service company [1] - The company distributes both acquired and originally produced movies and shows [1] - Netflix serves customers across nearly 200 countries and is headquartered in Los Angeles [1] Analyst Background - The analyst follows a GARP (Growth at a Reasonable Price) approach and a Value Investing approach when analyzing stocks and ETFs [1] - The analysis approach varies depending on the industry and the stage of the business cycle [1]

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. ...

Netflix, Inc. (NASDAQ: NFLX ) is the world's leading entertainment service with TV series, films, and games across a wide variety of genres and languages. They have over 300 million paid membershipsI believe in fundamental analysis and disciplined market research. I have strong quant background with a Ph.D. (Chemical Engineering, University of California, Santa Barbara) in model predictive control and an MBA (Jones School of Business, Rice University). My primary focus is to identify 1) small cap companies ...

Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock.In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the trad ...

Professional Background - The individual has a decade of experience in the Fast Moving Consumer Goods (FMCG) supply chain, combining a background in Mechanical Engineering with financial analysis [1] - Holds a Chartered Financial Analyst (CFA) designation and has worked on diverse projects ranging from automation to zero waste initiatives [1] - Expertise lies in managing, controlling, and constructing portfolios with a focus on sustainability [1] Analytical Approach - The individual employs a philosophy that blends engineering, mathematics, and statistics with rigorous financial analysis to uncover investment opportunities [1] - Emphasizes understanding the companies behind stocks, delving deep into the DNA of each investment opportunity [1] - Focuses on sustainable wealth creation, with a strong emphasis on the future and sustainability [1] Content Focus - Articles aim to transcend stock tickers and charts, unraveling the intricate tapestry of risk from multiple perspectives [1] - Explores cognitive and emotional biases that can influence investment decisions [1] - Aims to bring numbers to life and make investments more than just assets on paper [1]

Like clockwork, another year passes and more people decide to ditch cable TV. According to eMarketer, less than 50% of all households in the U.S. still have their traditional linear subscription package. This powerful secular trend has completely upended the media and entertainment industry.Netflix (NFLX -0.87%) definitely spurred the cord-cutting movement. Its stock has been a monster winner, up 1,530% in the past decade.However, investors can't forget about Walt Disney (DIS 1.30%). With unmatched intellec ...