Netflix maintained its 2025 guidance. That may not be the sign of confidence it seems

Core Insights - Netflix executives expressed confidence in the business despite economic challenges, but the full-year outlook indicates a more cautious stance [1][2] - The company reported a significant operating margin of 31.7% for Q1, exceeding the average estimate of 28.5%, and provided a strong Q2 guidance of 33.3% against an average estimate of 30% [2] - Netflix has not changed its long-term projections, suggesting uncertainty about the second half of the year [2][3] Financial Performance - Q1 revenue was $10.5 billion, aligning with analyst expectations, while Q2 guidance is set at$11 billion, slightly above expectations [5] - The company has stopped reporting quarterly subscriber numbers, which may limit insights into customer trends later in the year [5] Market Conditions - U.S. consumer sentiment is at its second-lowest level since 1952, influenced by new tariff policies [3] - Co-CEO Greg Peters noted that Netflix has historically been resilient during economic slowdowns, as home entertainment is a more affordable leisure option [4] - The monthly subscription with ads is priced at $7.99, which may appeal to cost-conscious consumers [4] Customer Retention - Retention rates are reported to be stable and strong, with no significant changes in plan mix or take rate observed [5]