History Says the Nasdaq Will Soar in 2025. 1 Unstoppable Stock Is Surging Right Now.

Core Viewpoint - The Nasdaq Composite has experienced significant growth, driven by factors such as declining inflation, lower interest rates, increased corporate earnings, and advancements in artificial intelligence, with a 43% rise in 2023 and an additional 29% in 2024, indicating a strong bullish trend for the future [1][2]. Company Performance - Netflix reported fourth-quarter results that exceeded expectations, with revenue of $10.2 billion, a 16% year-over-year increase, and earnings per share (EPS) of $4.27, which soared 102% [4]. - The company added over 18.9 million paid subscribers, marking a 44% increase and its largest quarterly subscriber growth ever [4]. - Analysts had estimated revenue of $10.1 billion and EPS of $4.20, indicating that Netflix outperformed expectations across all metrics [5]. Future Growth Projections - Netflix forecasts first-quarter revenue of $10.4 billion, an increase of over 11%, and EPS of $4.23, a nearly 6% rise, despite challenges from foreign currency fluctuations [5]. - For the full year 2025, Netflix anticipates revenue of $44 billion, representing about 13% growth, and has raised its operating margin outlook to 29% for 2025, up from 27% in 2024 [6]. Growth Drivers - Netflix's growth in Q4 was attributed to several factors, including successful video game launches, with "Squid Game: Unleashed" becoming the top free game in 107 countries [8]. - The company plans to expand its live streaming offerings, including new programming and events, which have already seen significant viewership [9][10]. - The advertising business is a major growth opportunity, with a 30% quarter-over-quarter increase in subscribers opting for the ad-supported tier, accounting for 55% of new subscribers in advertising markets [10]. Pricing Strategy - Netflix announced a price increase for subscriptions across various regions, including the U.S. and Canada, citing strong upcoming programming and high engagement levels as justification for the hikes [11]. Valuation Perspective - Netflix currently trades at approximately 36 times expected 2025 earnings, which may seem high, but the company's consistent growth and ability to exceed expectations suggest this valuation is justified [12].