Netflix(US:NFLX) Finboldยท2025-01-22 10:16Company Performance - Netflix stock surged by 14.24% to $982.99 following the Q4 2024 earnings report [2] - Netflix reported Q4 2024 EPS of $4.27, beating estimates by $7 and marking a 102.36% YoY increase [4] - Q4 2024 revenues reached $10.25 billion, surpassing analyst forecasts of $10.13 billion [5] - Netflix added 19 million new subscribers in Q4 2024, bringing the total subscriber count to 302 million [5] - The company achieved a net income of $1.87 billion for Q4 2024, up from $937.84 million in Q4 2023 [5] Financial Metrics - Netflix's operating income for Q4 2024 was $2.27 billion, compared to $1.50 billion in Q4 2023 [5] - Full-year 2024 revenues totaled $39.00 billion, up from $33.72 billion in 2023 [5] - Full-year 2024 net income was $8.71 billion, a significant increase from $5.41 billion in 2023 [5] - Diluted EPS for 2024 was $20.28, compared to $12.25 in 2023 [5] Growth Drivers - Ad-supported tier contributed significantly, with 55% of new Q4 2024 users opting for it [6] - Ad revenue nearly doubled YoY and is expected to double again in 2025 [6] - Management increased 2025 revenue guidance by $0.5 billion despite a stronger dollar [7] - Netflix announced a price hike of $1 to $2.50 per month, depending on the plan [7] Market Sentiment - Investors reacted positively to Netflix's strong quarterly results, driving the stock price up [2] - The company's forward PE ratio stands at 36.57, indicating high market confidence [8] - Returning seasons of popular shows like Squid Game, Wednesday, and Stranger Things are expected to boost future performance [8] Historical Context - Netflix stock had previously plummeted to $174 in Q1 2022 due to subscriber loss and password-sharing crackdown [1] - The company has shown a strong uptrend since then, despite introducing an ad-supported tier and increasing prices [1]