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Netflix shares surged to a record high of $1000 on Wednesday as the company posted a whopping beat of fourth-quarter estimates. The company’s blockbuster live event and the return of its trademark Squid Game series contributed to the surge.
Audience Grows
The streaming king remains on top of the world—Netflix pulled in a record 19 million paid users in the final three months of 2024, nearly double projections of 9.8 million. That is an over +3 standard deviations beat—quite impressive!
source: Netflix IR
The main culprit for this achievement was the seasonality effect.
The holiday season is usually strong, but this one was exceptionally strong thanks to the release of the 2nd season of Squid Game, which smashed records with 68 million streams in its first week.
The live boxing match between “Iron” Mike Tyson and Paul Logan was another big catalyst, attracting 65 million views.
Numbers breakdown
Revenue reached $10.3 billion in the final quarter of last year, also beating the consensus forecast of $10.1 billion.
The cost-cutting initiatives and the password-cracking effort also produced the desired effect, with Netflix earnings per share up $4.3, beating analyst estimates of $4.2.
The outlook is also bright! Netflix expects revenue for 2025 to be between $43.5 billion and $44.5 billion, mostly above Wall Street’s expectation of $43.65 billion.
Today, Netflix has over 300 million paying subscribers, which translates to a 20-year growth rate of nearly 27%!
source: Netflix IR
Now, the not-so-good news, at least for consumers but possibly great for existing shareholders, is that the streaming platform is raising prices in some countries like the US, Canada, and Portugal. The most popular plan in the US will rise by 16% to $17.99 a month.
The ad-supported tier will rise by 14% to $7.99 a month.
Shares Hit Record High
However, starting next year, Netflix will no longer report subscriber figures and will focus instead on other metrics like revenue growth and profit.
Netflix has been up over 100% over the last year, while Nasdaq clocked 24% for the same period.
source: Koyfin
This week, the company also jumped through the $400 billion market cap threshold, marking another milestone.
Investors can long Netflix using our 2x Netflix, 3x Netflix.
Alternatively, investors can short Netflix using our -1x Netflix.
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