Netflix Inc. (NFLX)

[winston]

not vested

Netflix Inc - Stock Analyst Research
Target Price* 950
Recommendation NEUTRAL

Netflix Inc.- Ability to withstand recession

1Q25 revenue met our estimates while PATMI outperformed due to better monetization and favourable timing of expenses.

1Q25 revenue/PATMI was at 24%/26% of our FY25e forecasts.

Revenue growth of 13% YoY was driven by higher subscription and recent price adjustment (+16% for standard plans & +14% for ad plans).

This growth is partially attributed to NFLX’s continued focus on its ad-supported business. Management has projected strong growth for 2Q25, anticipating minimal impact from the broader economic slowdown.

We raise our FY25e revenue/PATMI by 1% each to account for gradual price increases, thriving ads business, and increasing operating leverage.

We raised terminal growth from 3.0% to 3.5% due to its long-term monetization potential through advertising. We raise our DCF target price to US$950 (prev. US$870), and upgrade from REDUCE to NEUTRAL.

Our WACC assumptions remain unchanged. A strong content pipeline and the expansion of its ad-supported tier position will enable NFLX to navigate potential economic slowdowns.

However, trading at 37x FY25e P/E—well above the industry average of 17x—NFLX’s current valuation suggests limited near-term upside.

Source: Phillips

https://www.poems.com.sg/stock-research/NFLX/

[winston]

not vested

Netflix said on Wednesday 94 million subscribers use its advertising-supported tier, up from 70 million in November, as the video-streaming giant’s lower-priced plan sees strong support amid global economic uncertainty.

With more than 300 million global customers, Netflix (NASDAQ:NFLX) is seeing robust spending across all streaming tiers and had said in April it is not seeing any significant shifts in consumer spending.

Source: Phillips

[winston]

not vested

Netflix posts earnings beat as revenue grows 16% in second quarter.

The company updated its full-year revenue forecast, noting that it expects revenue to be between $44.8 billion and $45.2 billion, up from a range of $43.5 billion to $44.5 billion.

Netflix’s higher forecast reflects the weakening of the U.S. dollar compared with other currencies as well as healthy member growth and ad sales.

Netflix reported revenue of $11.08 billion for the second quarter, higher than Wall Street’s estimates of $11.07 billion.

Source: Phillips

[behappyalways]

Netflix Crashes After Musk's "Cancel" Crusade Leads To Top, Bottom Line Miss
https://www.zerohedge.com/markets/netfl ... -line-miss

[behappyalways]

Netflix To Buy Warner Bros In $72 Billion Deal; Hollywood Goes Into Panic Mode
https://www.zerohedge.com/markets/netfl ... panic-mode

[behappyalways]

Paramount ups Warner Bros bid with Trump son-in-law at side
https://www.theedgesingapore.com/news/m ... n-law-side


The deal with Warner Bros will push Netflix’s revenues to dominate the streaming industry
https://x.com/AyeshaTariq/status/1998011070309601761


Offer Royale: Paramount-Netflix Bidding War For Warner Bros Heats Up In A Blockbuster Showdown
https://www.zerohedge.com/markets/could ... -mega-deal

[behappyalways]

How $NFLX makes money
https://x.com/Mayhem4Markets/status/2000611350737805634

[behappyalways]

Netflix Craters On Disappointing Guidance, Stock Buyback Pause
https://www.zerohedge.com/markets/netfl ... back-pause

[winston]

not vested

Netflix plunges after hours on Q2 guidance miss, says co-founder Hastings to exit

By Jaiveer Shekhawat

Investing.com -- Netflix on Thursday forecasted second-quarter (Q2) profit below Wall Street estimates that sent its shares plunging more than 8% in extended hours of trading.

Netflix sees Q2 2026 earnings per share of $0.78, versus the Wall Street consensus of $0.84.

Netflix sees Q2 2026 revenue of $12.57 billion, which was also below the estimates of $12.64 billion.

"Growth in content amortization will be first-half weighted due to the timing of title launches.

We expect Q2 to have the highest year-over-year content amortization growth rate in 2026, before decelerating to mid-to-high single digit growth in the second half of the year," the company said.

The streaming-giant however reported first-quarter (Q1) profit that sailed past analyst estimates as subscription revenue remained strong.

It reported Q1 earnings per share of $1.23, $0.44 better than the analyst estimate of $0.79.

Its revenue for the quarter came in at $12.25 billion that jumped 16.2% from the year-ago period and also beat the consensus estimate of $12.18 billion.

“Revenue in Q1 grew 16% year over year (+14% on a foreign exchange (F/X) neutral basis), driven primarily by membership growth, higher pricing, and increased ad revenue,” it said in a shareholder letter.

Netflix said it continue to project 2026 revenue of $50.7 billion -$51.7 billion and an operating margin of 31.5%.

The results comes after Netflix’ failed to acquire Warner Bros. Discovery for $72 billion and attempts to regain its footing as the largest streamer.

Netflix, which ​long told investors ⁠that a Warner Bros acquisition was a "nice to have, not need to have" proposition, highlighted areas of future growth did not tell how it will spend $2.8 billion termination fee it received.

The ​company said it is expanding its entertainment offerings with ​video ⁠podcasts, and live entertainment - such as the World Baseball Classic in Japan - is fuelling engagement.

It plans to leverage technology to improve the user experience and improve ⁠monetization, as ​advertising revenue remains on track to reach $3 ​billion in 2026 - a twofold increase from a year ago.

Source: investing.com

https://www.investing.com/news/earnings ... on-4619126

[winston]

not vested

Netflix Stock Is Down, and It Could Get Worse. Here's Why Shares Could Fall Even More.

by Daniel Sparks

Netflix's 16.2% revenue growth rate in the first quarter of 2026 actually represents a deceleration from the 17.6% growth rate Netflix posted in the fourth quarter of 2025.

Management's guidance for the second quarter implies a further step down in momentum, with the company forecasting year-over-year revenue growth of just 13.5%.

Apple recently secured a major exclusive streaming partnership with Formula 1. And this is on top of Apple offering Apple TV as part of bundles with other Apple services or even with rival streaming service Peacock.

If Netflix's price-to-earnings ratio were to contract to a more reasonable multiple of around 22 -- a figure that better reflects its maturing profile -- the stock would trade closer to $68. That implies a downside of roughly 30% from the $98 after-hours price.

Source: The Motley Fool

https://finance.yahoo.com/markets/stock ... 00404.html