Michael Wiggins De Oliveira is an inflection investor. This means buying into cheap companies at the moment when their narrative is changing and the business is on a path toward becoming significantly more profitable over the next year.With a focus on tech and “the Great Energy Transition (including uranium)”, Michael runs a concentrated portfolio with approximately 15 to 20 stocks and an average holding period of 18 months. Through his 10+ years analyzing countless companies, Michael has accumulated outsta ...

This article has been reviewed according to Science X's editorial process and policies . Editors have highlighted the following attributes while ensuring the content's credibility: Netflix is starting the year strong with a new season of its South Korean series 'Squid Game Season' show that has won fans around the world. Netflix on Tuesday said it added nearly 19 million subscribers during the holiday season to finish out last year with more than 300 million subscribers. Company executives credited stead ...

Group 1 - Netflix shares surged in after-hours trading following better-than-expected fourth-quarter results and an increased revenue outlook for 2025 [2][10] - The company added 19 million net new subscribers in the fourth quarter, bringing total membership to over 300 million [2] - Netflix shares have gained 80% over the past 12 months, significantly outperforming the S&P 500's 25% return during the same period [3] Group 2 - After reaching a record high in early December, Netflix shares retraced by 13% before finding support just below the 50-day moving average [4][10] - Trading volumes were at their highest since mid-October, indicating that larger market participants were preparing for post-earnings volatility [4] - Bars pattern analysis suggests a potential upside target of around $1,285, with a new trend expected to develop until late May [7][10] Group 3 - Key support levels to monitor include $930, which may attract strong buying interest, and $824, where investors may consider accumulating shares [8][9][10]

Group 1 - The article discusses the significant earnings increase reported by Netflix for Q4 and fiscal year 2024, but highlights that this increase was not matched by cash flow growth, indicating potential issues with accounting assumptions [2] - The oil and gas industry is characterized as a boom-bust, cyclical sector, requiring patience and experience for successful investment [2] Group 2 - The analysis provided in the article is part of a broader service focused on identifying undervalued companies in the oil and gas sector, including detailed assessments of balance sheets, competitive positions, and development prospects [1]

Core Insights - The article discusses the investment position in NFLX, indicating a beneficial long position through various means such as stock ownership and derivatives [1]. Group 1 - The analyst expresses personal opinions regarding NFLX without receiving compensation from the company [1]. - There is no business relationship between the analyst and any company mentioned in the article [1]. Group 2 - The article emphasizes that past performance does not guarantee future results, highlighting the uncertainty in investment outcomes [2]. - It clarifies that no specific investment recommendations are provided, and opinions may not reflect the views of Seeking Alpha as a whole [2].

Core Insights - Netflix achieved a record 19 million net new subscribers in Q4 2024, marking the largest quarterly membership increase in its history [1] - The company's diverse content strategy, including high-profile series and live events, significantly contributed to this growth [1][4] - Netflix's revenue rose 16% to $10.25 billion in 2024, ending the year with 302 million memberships [4] Content Strategy - The success of Netflix's membership growth was not solely attributed to major live events; broad strength across various content categories and regions played a crucial role [2][3] - The company secured U.S. rights for FIFA's Women's World Cup in 2027 and 2031, indicating a commitment to expanding diverse content offerings [4] Advertising Strategy - The ads-based plan has gained traction, representing over 55% of signups in ad-supported countries, with a 30% quarter-over-quarter increase in membership [5] - Netflix exceeded its ads revenue target in Q4, doubling its ads revenue year over year and expecting to double it again [6] Future Outlook - The company forecasts revenue growth of 12%-14% year over year for 2025, driven by sustained membership increases and an expanding ad business [7] - Netflix is focusing on engagement metrics and operating margins rather than just subscriber numbers, reflecting an evolved business model [6] Market Position - Netflix holds a leadership position in engagement (approximately two hours per paid membership per day), revenue ($39 billion), and profit ($10 billion in operating income) in a growing market [8] - The company aims to improve its offerings, including more series and films, enhanced product experience, and expansion into live programming and games [9]

Financial Data and Key Metrics - No specific financial data or key metrics changes mentioned in the provided content [1][2][3] Business Line Data and Key Metrics - No specific business line data or key metrics changes mentioned in the provided content [1][2][3] Market Data and Key Metrics - No specific market data or key metrics changes mentioned in the provided content [1][2][3] Company Strategy and Industry Competition - No specific company strategy or industry competition details mentioned in the provided content [1][2][3] Management Commentary on Operating Environment and Future Outlook - The company acknowledges the difficult time for many people in Southern California due to wildfires, particularly impacting the entertainment industry and employees [2] - The company is focused on helping with relief efforts and getting affected employees back to work [2] - No meaningful delays in project delivery or impact on cash content spending for 2025 due to the wildfires [3] Other Important Information - The company is making forward-looking statements, and actual results may vary [1] Q&A Session Summary Question: Impact of wildfires on L A-based productions and cash content spending - The wildfires have caused significant disruption to the lives of many people in Southern California, including those in the entertainment industry [2] - No meaningful delays in project delivery or impact on cash content spending for 2025 [3] - The company is working to keep everything on schedule safely while being mindful of those who need time [3]

Core Insights - Netflix reported $10.25 billion in revenue for Q4 2024, a 16% year-over-year increase, with an EPS of $4.27 compared to $2.11 a year ago, exceeding both revenue and EPS estimates [1] Financial Performance - Revenue exceeded the Zacks Consensus Estimate of $10.12 billion by 1.29%, and EPS surpassed the consensus estimate of $4.20 by 1.67% [1] - Netflix's stock has returned -5.9% over the past month, while the Zacks S&P 500 composite increased by 1.2% [3] Membership Metrics - Paid net membership additions were 18.91 million, significantly higher than the average estimate of 9.12 million [4] - Total paid memberships at the end of the period reached 301.63 million, surpassing the average estimate of 291.69 million [4] Regional Revenue Breakdown - United States and Canada revenue was $4.52 billion, exceeding the estimate of $4.49 billion, reflecting a 14.9% year-over-year change [4] - Asia-Pacific revenue was $1.21 billion, above the estimate of $1.16 billion, with a year-over-year increase of 25.9% [4] - Latin America revenue was $1.23 billion, slightly below the estimate of $1.24 billion, showing a 6.4% year-over-year increase [4] - Europe, Middle East, and Africa revenue reached $3.29 billion, exceeding the estimate of $3.22 billion, with an 18.1% year-over-year change [4]

Market Overview - Markets experienced a strong session with the Dow gaining +537 points (+1.24%), S&P 500 up +52 points (+0.88%), and Nasdaq increasing by +126 points (+0.64%) on the first full day of President Trump's second administration [1] - The Russell 2000 led all major indexes with a gain of +1.85% and is nearly +4% from the start of the year, benefiting from large tariffs that primarily affect foreign goods [2] Company Earnings Reports - **Netflix**: Shares rose +12% after Q4 earnings of $4.27 per share exceeded the $4.19 consensus, with revenues of $10.25 billion surpassing expectations of $10.12 billion. Subscriber growth was significant, with +18.9 million net additions compared to the projected 8.9 million [3][4] - **United Airlines**: Shares increased by +3.5% following a strong Q4 report, with earnings of $3.26 per share beating the $3.01 estimate and revenues of $14.7 billion exceeding expectations of $14.39 billion. Premium revenues grew by +10% [5] - **Capital One**: Reported Q4 earnings of $2.67 per share, slightly above expectations, with revenues of $10.19 billion modestly ahead of the $10.16 billion forecast. Loan loss provisions were lower than expected at $2.64 billion [6] Upcoming Earnings Reports - Major companies such as Johnson & Johnson and Procter & Gamble are expected to report earnings, along with GE Vernova, which is looking for its third consecutive positive surprise [7] Economic Indicators - Leading Economic Indicators (LEI) for December are anticipated to show a decline to -0.1% from +0.3% in the previous month [8]

Core Viewpoint - Netflix co-CEO Ted Sarandos expressed that while live sports on the platform is beneficial, the economics of full season rights for major leagues remain challenging [1][4]. Group 1: Live Sports Strategy - Netflix has established long-term licensing agreements with WWE and has secured two NFL games on Christmas Day, along with a deal for the 2027 and 2031 Women's World Cup [1]. - Sarandos indicated that the attractiveness of full season rights depends on the pricing, as the costs for sports rights have been increasing significantly due to competition from other streaming services like Apple and Amazon [1][2]. Group 2: Audience Engagement - The wrestling content on Netflix garnered approximately 5 million views in its first week, which is about double the audience of Monday Night Raw on traditional television [4]. - There was a 25% increase in non-live viewing the day after live events, particularly from international markets such as the U.K., Canada, Mexico, Australia, and Brazil [4]. Group 3: Economic Considerations - Sarandos emphasized the importance of ensuring that the economics of sports deals work for both Netflix and the leagues, acknowledging the difficulty in making full league, full season economics viable [2][4].