Remember when everybody said that Netflix was done?
That there was just too much competition for the OG of online entertainment streaming services to continue to profit and stay ahead of the curve?
Man…
We’re THEY wrong.
Netflix dropped some serious numbers – and it’s the company has EVERY right to brag about it if it wants.
What it accomplished is nothing less than a slam dunk in the face of its detractors.
But you know what they say…
“The best revenge is living well” – and from the looks of it – Netflix is living WELL.
Of course, the company can’t rest on its laurels…
With every new quarter comes a new goal of grabbing more subscribers and keeping them online as they stream their favorite shows non-stop.
Can they keep up this pace?
Well, let’s take a deeper look and see what the future may hold for one of the orginal FAANG stocks.
So, what kind of numbers are we talking about here?
The streaming giant pulled in $10.2 billion in revenue last quarter – edging past the $10.1 billion analysts had predicted.
Even better, it boosted its revenue outlook for the rest of the year – signaling that it expects the momentum to continue.
But that’s really no surprise – Netflix (NFLX) had a stellar few months – reporting its biggest-ever quarterly jump in subscribers.
That success came on the back of major content wins – including the highly anticipated second season of Squid Game and its foray into live sports broadcasts.
Investors, already riding high on Netflix’s 83% stock gain in 2024 -its best performance since 2015 – pushed shares up another 10% after the news broke.
Netflix may be an “OG” in on-demand streaming – but its recent strategy shift shows that it’s not content to rest on its laurels.
The company spent much of the past year locking down deals to broadcast live sports – moving beyond scripted series and films to offer everything from boxing and wrestling to American football and soccer.
The reasoning is simple: sports bring in loyal, engaged audiences – and engaged audiences bring in advertisers.
Unlike traditional streaming content – which can be binge-watched and forgotten in a weekend – live sports keep viewers coming back week after week. That means more exposure for advertisers and…
Ultimately, a steady revenue stream for Netflix that doesn’t rely solely on constantly acquiring new subscribers.
That’s also why Netflix is planning to stop reporting subscriber growth in its earnings reports – it wants the focus to shift to other revenue-driving metrics – reinforcing the idea that its future isn’t just about how many people are watching…
But how much money it’s making per viewer.
And make no mistake – Netflix is now a massive business.
The company boasts a market capitalization of around $400 billion – ranking it as the 21st largest company in the US…
But success at this scale comes at a price – Netflix’s price-to-earnings (P/E) ratio stands at 37x – marking it as an expensive stock by most standards.
That valuation assumes continued dominance and growth – but even with its recent wins – Netflix still has a long way to go before it can stand shoulder-to-shoulder with the Magnificent Seven: Apple (AAPL), Amazon (AMZN), Alphabet (GOOG), Tesla (TSLA), Meta (META), Microsoft (MSFT) and Nvidia (NVDA).
Still, Netflix has made one thing clear: it’s evolving.
With a firm grip on streaming, a growing presence in sports, and a pivot toward advertiser-friendly content…
It’s positioning itself for long-term dominance.
Whether it can keep up this level of success remains to be seen, but for now, Netflix is proving it’s far from a one-trick pony.
And that’s really the name of the game, right?
Evolve or die.
While Netflix is changing its strategies to remain not only relevant – but PROMINENT – in a sea of streaming choices…
Investors are trying to decide if it’s a good place to watch their money grow.
It’s the age-old question – but it’s a question that members of GorillaTrades never have to answer because they’re always ahead of the curve thanks to one little, yet EXTREMELY important aspect of trading:
Data.
Our recommendations are always based in data and hard numbers…
Never speculation, rumor or gut-feelings.
We worked diligently to create a system that separates the winners from the losers by using the numbers.
Not only can we tell if a stock is for real – but most of the time – we can tell you when the best time is to get in, and more importantly, when to get out.
I’d love to show you how it works – but you’ve got to be on the inside to truly understand. Which is why I’m asking you to become a member of GorillaTrades today.
We’ll do all the heavy lifting – all you have to do is hit the buy and sell buttons.
Or you can continue to go it alone – the choice is yours.
Either way, keep your eye on Netflix – it’s trying its best to turn the Magnificent Seven into the Big Eight!
“The measure of intelligence is the ability to change.” – Albert Einstein
