Ge Long Hui·2026-01-22 02:33Core Viewpoint - Netflix's performance in the last quarter exceeded expectations, with revenue reaching $12 billion, a year-on-year increase of 18%, aligning with market forecasts [1] Group 1: Financial Performance - Revenue for the last quarter was $12 billion, reflecting an 18% year-on-year growth compared to a 17% increase in the previous quarter [1] - The growth was primarily driven by the release of strong hit content, such as the final season of "Stranger Things" [1] - Despite the revenue guidance for Q1 2026 and the full year meeting market expectations, the profit margin guidance fell short, leading to a decline in stock price during after-hours trading [1] Group 2: Future Outlook - Looking ahead to 2026, the company is expected to continue its growth trajectory, driven by subscription user growth fueled by content, improved pricing power, advancements in advertising business, and expansion of operating profit margins [1] - The firm maintains a "Buy" rating on Netflix, adjusting the target price from $142 to $126 [1] - Although uncertainties surrounding Warner Bros. Discovery's merger remain, it is anticipated that these will not have a significant impact on Netflix's performance in 2026 [1] - The current stock price level is considered attractive due to a significant valuation adjustment [1]