Core Insights - Netflix exceeded Wall Street's expectations for the first quarter, reporting total revenue of $10.543 billion and earnings per share of $6.61, surpassing analyst forecasts of $5.66 EPS and $10.5 billion in revenue [1] Financial Performance - Revenue growth in the U.S. and Canada slowed to 9%, down from 15% in the previous quarter, attributed to a partial impact from a price change and the absence of advertising revenue from NFL games [3] - The company anticipates a re-acceleration of revenue growth in the U.S. and Canada for the April-to-June quarter [3] Subscriber Metrics - Netflix is no longer reporting subscriber numbers quarterly but plans to share select data during significant milestones; the last reported figure was 303 million global subscribers [2] Industry Context - The earnings report comes amid a challenging economic environment influenced by fluctuating tariffs, with analysts viewing Netflix as one of the least vulnerable companies in the media sector due to its service-based model [4] - Netflix's advertising business, which is relatively new, is expected to be less affected by a downturn in advertising compared to other media and tech companies [4] Programming Highlights - The first quarter saw the success of the series "Adolescence," which quickly became one of the most-streamed series in Netflix's history, with a sequel in development [5] - WWE Raw debuted on Netflix, enhancing its live weekly offerings following a multi-million dollar rights deal [5] Challenges - The film "Electric State," which cost at least $275 million, received poor reviews and garnered only 25.2 million views shortly after its release, underperforming compared to other Netflix films [6]

Core Viewpoint - Netflix is expected to report strong earnings, continuing its momentum as a leading growth stock, driven by a tariff-resistant business model, high-margin content distribution, and pricing power [1][17]. Group 1: Tariff-Resistant Business Model - Netflix's stock has shown resilience, with an 8.8% year-to-date increase, outperforming the broader market [2]. - The company generates approximately 60% of its revenue in currencies other than the U.S. dollar, highlighting its international growth potential [4]. - Revenue growth in the U.S. and Canada was only 6.9%, while international segments like Asia Pacific saw an 18.5% increase, indicating the importance of expanding international memberships [4][5]. Group 2: High-Margin Content Distribution - Netflix's strategy involves balancing the quantity and quality of its content, which has led to successful subscriber retention [6][8]. - The company has effectively produced high-quality content, attracting viewers through major events and new series [7][10]. - The international success of shows like "Squid Games" demonstrates Netflix's ability to create hits that resonate globally, enhancing its revenue potential [11][12]. Group 3: Pricing Power - Netflix has consistently increased subscription prices, with the latest hike resulting in over 55% of sign-ups coming from ad-supported plans [13][15]. - The focus on ad revenue may lower average revenue per subscriber but can enhance overall content utilization and profitability [14]. - The company is guiding for a revenue of $10.416 billion for the first quarter of fiscal 2025, reflecting an 11.2% year-over-year increase, alongside an operating margin of 28.2% [15][16].

Core Viewpoint - Netflix is expected to report strong first-quarter earnings, which could lead to discussions about a potential stock split, marking the first in nearly a decade [2][3][7]. Group 1: Earnings Expectations - Netflix's first-quarter revenue is projected to rise by 11% to $10.4 billion, with earnings expected to reach $5.58 per share according to the company's guidance [7]. - Analysts are forecasting a profit of $5.66 per share and revenue of $10.5 billion, indicating a positive outlook as Netflix has consistently beaten earnings estimates in previous reports [8]. Group 2: Stock Split Considerations - Netflix has only executed two stock splits in its 23 years of public trading, with the last being a 7-for-1 split in 2015 [3][4]. - The current stock price is significantly higher than during previous splits, and there is less pressure to maintain a lower price point [4]. - A stock split could enhance accessibility for individual investors and potentially increase trading activity, especially as Netflix approaches the $1,000 mark [9]. Group 3: Market Context - The tech industry has seen several major companies declare stock splits in recent years, suggesting a shift in market sentiment regarding high stock prices [9]. - Netflix's current stock price could hinder its inclusion in the Dow 30 index, as it would disproportionately affect the index due to its price-weighted nature [9].

Core Viewpoint - FlexTV, a short drama streaming platform under Mega Matrix Inc., launched six new English series that explore themes of resilience, love, and self-discovery, appealing to a diverse global audience [1][9]. Group 1: New Series Highlights - "Karma's Landlord" features Aidan Ward, a security guard who gains divine powers and confronts a conspiracy in Cloud City, emphasizing the theme of justice [2]. - "Hocus Pocus, Who's the Focus?" tells the story of single mother Olivia Reed, who uncovers deep-seated secrets while working for Maxwell, the heir to a family lineage [3]. - "MILF Wars: The Final Season" follows Amanda Wilson as she navigates complex family dynamics and social expectations in her pursuit of love [4]. - "Little Miss Can't Be Fooled" depicts Stella, who, after exposing her fiancé's infidelity, enters a marriage of convenience that evolves into genuine affection [5]. - "After Divorce, I Built a Fabulous Life" showcases Mia's transformation from homemaker to fashion icon post-divorce, highlighting female resilience [6]. - "Veil of My Juliet" revolves around Nicholas and Rachel, who confront a past-life curse and blood feuds to uncover a truth of sacrifice and redemption [7]. Group 2: Platform and Company Overview - FlexTV is available in over 100 countries and supports 15 languages, including English, Japanese, and Korean, aiming for genre innovation and storytelling excellence [9]. - Mega Matrix Inc. operates FlexTV through its wholly owned subsidiary Yuder Pte, Ltd., and is headquartered in Singapore [10].

Core Viewpoint - Despite the volatility in Wall Street and significant drawdowns among most "Magnificent 7" stocks in 2025, Netflix (NFLX) has shown resilience ahead of its Q1 earnings release, driven by several key factors [1][8]. Group 1: Tariff Immunity - Netflix is largely unaffected by the current trade policy uncertainties, as digital services are not a priority for the Trump Administration and are not subject to tariffs under WTO policy [2][4]. - In contrast, other "Magnificent 7" stocks like Amazon, Microsoft, Apple, Nvidia, and Tesla face significant risks due to their reliance on overseas production and parts [1][2]. Group 2: Growth Performance - Netflix recorded a remarkable 102% year-over-year earnings growth last quarter, making it the fastest-growing stock among the "Magnificent 7" [3][8]. - The company has effectively navigated intense competition from services like Amazon Prime, YouTube TV, and Disney Plus, showcasing strong management capabilities [3][8]. Group 3: Strategic Initiatives - The crackdown on password sharing in mid-2023 led to the highest user acquisition days in Netflix's history, indicating successful strategic adjustments [4][8]. - Netflix has evolved into a major content powerhouse, investing heavily in original programming and attracting renowned Hollywood talent, which has broadened its viewership [4][8]. Group 4: Financial Metrics - Netflix has a history of bullish earnings surprises, having beaten Zacks Consensus Analyst Estimates for four consecutive quarters, which bodes well for its upcoming earnings report [6][8]. - The stock's low valuation and strong earnings surprise history contribute positively to its investment appeal [3][8].

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Core Viewpoint - Netflix aims for significant growth, targeting $78 billion in revenue by 2030, doubling its current revenue of $39 billion in 2024 [2][4]. Group 1: Growth Strategy - The company plans to increase subscriptions in international markets, focusing on regions with high broadband penetration, such as Brazil and India [3]. - Netflix aims to grow its subscriber base from over 301 million to 410 million by the end of the decade [3]. - The company intends to generate $9 billion in ad sales over the next five years, with its ad-supported tier reaching 70 million users [4]. Group 2: Financial Goals - Netflix has set a target to triple its operating income to over $31 billion by 2030, up from $10.4 billion in 2024 [4]. - The current market capitalization is approximately $419 billion, with a goal to reach $1 trillion by 2030 [5]. - The company has a price-to-sales (P/S) ratio of roughly 11, indicating that if it maintains this ratio while achieving its growth targets, it could join the $1 trillion club [5].

Core Viewpoint - The S&P 500 index has experienced significant volatility due to President Trump's new trade tariffs, leading to challenges in forecasting future GDP and further market fluctuations in the coming months [1] Group 1: Market Volatility and Investment Safety - Despite market volatility, there are fundamental arguments for safety in the stock market, particularly through businesses with predictable and stable cash flows [2] - Companies like T-Mobile US Inc., Spotify Technology, and Netflix Inc. are highlighted as potential safe investments due to their stable business models [3] Group 2: T-Mobile US Inc. - T-Mobile's 12-month stock price forecast is $256.80, indicating a -2.22% downside from the current price of $262.64, with a moderate buy rating based on 23 analyst ratings [4] - T-Mobile commands a high price-to-book (P/B) ratio of 4.8x, significantly above the communication sector's average of 1.8x, reflecting expectations of outperformance [4][5] - The subscription-based model of T-Mobile provides predictable cash flows, enhancing its stability and attractiveness to investors [6] - Institutional investors, such as GAMMA Investing, initiated a stake of $814.4 million in T-Mobile stock, signaling confidence in the company's future [7] Group 3: Spotify Technology - Spotify's 12-month stock price forecast is $563.41, suggesting a 3.00% upside from the current price of $546.98, with a moderate buy rating based on 29 analyst ratings [9] - Analysts from Wells Fargo have reiterated an Overweight rating for Spotify, with a valuation target of up to $740 per share, indicating a potential 34% upside [10] - GAMMA Investing allocated $394.8 million into Spotify, further supporting its bullish outlook [12] Group 4: Netflix Inc. - Netflix's 12-month stock price forecast is $1,017.31, representing a 9.24% upside from the current price of $931.28, with a moderate buy rating based on 37 analyst ratings [13] - Analysts project earnings per share (EPS) of $6.28 for Q3 2025, a 49.5% increase from the current EPS of $4.20, indicating strong growth potential [14] - Netflix has shown resilience during economic uncertainty, outperforming the broader S&P 500 index [15]

Netflix Inc (NASDAQ:NFLX) will announce its first-quarter results after the close on Thursday, April 17. Ahead of the event, analysts anticipate earnings of $7.73 per share, which is an 8.6% premium to the same quarter last year. It's worth noting that this would be the company's slowest growth rate in seven quarters, however. At last look today, NFLX was up 0.7% at $925.27, though pressure at the 80-day moving average still lingers above. Year to date, the equity is still up 3.7% despite the tariff-fueled ...

Economic Overview - Inflation unexpectedly declined in March for the first time in nearly five years, with the consumer price index (CPI) decreasing by 0.1% sequentially after a 0.2% increase in February, surpassing the consensus estimate of a 0.2% rise [3][4] - Year-over-year, CPI rose 2.4% in March, down from 2.8% in February, while core CPI increased by 0.1% sequentially, marking the smallest rise since June 2024 [4][7] - The decline in inflation was attributed to cheaper fuel and motor vehicles, with gasoline prices dropping by 6.3%, although food prices rose by 0.45% in March [4] Market Reaction - Following President Trump's announcement of a 90-day pause on tariffs, Wall Street experienced significant gains, with all three major indexes hitting record single-day increases [5][6] - The temporary halt in tariffs provided relief to investors after a previous loss of $6.4 trillion in four trading sessions due to the imposition of tariffs [6] Investment Opportunities - Given the positive market sentiment, investing in consumer discretionary stocks is recommended, with four highlighted stocks: American Outdoor Brands, Carnival Corporation, GameStop, and Netflix [2] - American Outdoor Brands (AOUT) has an expected earnings growth rate of 93.8% for the current year, with a Zacks Rank of 2 [9] - Carnival Corporation (CCL) is the largest cruise operator globally, with an expected earnings growth rate of 31% for the current year and a Zacks Rank of 2 [10] - GameStop (GME), the largest video game retailer, has an expected earnings growth rate of over 100% for next year, currently holding a Zacks Rank of 1 [12] - Netflix (NFLX), a pioneer in streaming, has an expected earnings growth rate of 24.1% for the current year, with a Zacks Rank of 2 [14]