Netflix Stock Up 70% In 12 Months - What Drove It?

Core Insights - The significant change in Netflix (NFLX) stock, with a 68.7% increase from 10/13/2024 to 10/13/2025, was primarily influenced by a 25.8% change in the company's Net Income Margin [2] Factors Behind Stock Price Change - Key developments influencing NFLX stock price include the company's successful Q4 2024 earnings report, which exceeded revenue, earnings per share, and paid subscriber expectations, adding 18.9 million new subscribers [6] - The implementation and expansion of an ad-supported tier, along with measures to curb password sharing, significantly contributed to subscriber growth and revenue, with ad revenue expected to nearly double in 2025 [6] - Netflix shifted its reporting focus from quarterly subscriber counts to overall revenue and engagement metrics starting in Q1 2025, consistently beating revenue and EPS estimates throughout Q1 and Q2 2025 [6] - Price increases for subscription plans in late 2024 and early 2025, along with investments in original content and expansion into live events and sports, have been key drivers for revenue and engagement [6] - The company maintained a strong competitive position, outperforming rivals in share price increase and growing its corporate demand share in 2024 [6] Current Assessment of NFLX Stock - The current assessment indicates that NFLX stock is considered relatively expensive, prompting further analysis of the underlying factors driving this opinion [5]