Netflix(US:NFLX) The Motley Foolยท2025-04-21 16:20Core Viewpoint - The "Magnificent Seven" tech stocks have faced significant declines in 2023, while Netflix has shown resilience with a 9% year-to-date increase, outperforming its peers and the S&P 500 [1]. Financial Performance - Netflix's revenue increased by 12.5% year over year to $10.5 billion, meeting analyst expectations [4]. - The operating margin reached a record 31.7%, with operating income rising 27% to $3.3 billion, leading to earnings per share increasing from $5.28 to $6.61, surpassing the consensus of $5.66 [4]. Growth Expectations - For the current quarter, Netflix anticipates a revenue increase of 15% to $11.0 billion and an operating margin of 33.3%, which would set another record [8]. - The company maintains its full-year revenue guidance of $43.5 billion to $44.5 billion and an operating margin of 29% [8]. Market Resilience - Netflix has indicated that it is not experiencing significant headwinds from broader economic uncertainties, including the trade war, and expects to remain resilient during economic downturns [7][9]. - The entertainment sector's historical stability during downturns, along with Netflix's global revenue sources and absence of operations in China, contribute to its resilience [9]. Strategic Execution - The company continues to execute its content strategy effectively, appealing to a wide range of audiences globally, which supports its growth despite market uncertainties [5][11]. - Netflix's premium stock valuation reflects its strong execution and growth potential in the streaming industry [11].