Netflix Shares Soar on Strong Earnings

Netflix shares jumped over 10% in after-hours trading, reaching a record high after surpassing fourth-quarter earnings expectations.

The company added 19 million new subscribers, doubling analyst estimates and bringing its global total to 302 million.

Live sports events, such as the Jake Paul vs. Mike Tyson match, played a key role in driving user registrations.

Netflix also credited its hit content, including Squid Game Season 2 and NFL games, for its record-breaking growth.

The ad-supported tier accounted for 55% of sign-ups in available markets, with membership in this tier rising nearly 30%.

In 2025, Netflix plans to enhance its ad-supported offering to attract premium advertisers and boost advertising revenue.

Netflix’s total revenue rose 16% year-on-year to $10.25 billion, exceeding analysts’ predictions of $10.11 billion.

Earnings per share more than doubled, reaching $4.27 compared to $2.11 in the same quarter last year.

However, the operating margin fell to 22%, reflecting investments in live sports programming.

Regionally, the US, Canada, and EMEA markets remained Netflix’s top revenue sources, contributing 44% and 32%, respectively.

Netflix plans to increase prices in several countries, including the US and Canada, to support further content investments.

Netflix expects revenue of $43.5 billion to $44.5 billion in 2025, representing a growth rate of 12% to 14%.

The company upgraded its operating margin forecast to 29% and projected free cash flow of $8 billion for 2025.

Netflix remains committed to expanding its content library, live programming, and gaming initiatives.

Popular shows like Squid Game, Wednesday, and Stranger Things are set to return in 2025, boosting future growth.

“Netflix’s strategy of compelling content and broadening its ad-supported base ensures it stays on a strong growth path,” said Josh Gilbert of eToro.

Financial Mirror