Netflix (NFLX) Reports $12.05B Q4 Revenue, Stock Down 37%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 49m ago
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Source: Fool
- Solid User Growth: In Q4, Netflix attracted 120 million viewers for the final season of Stranger Things, ending the year with 325 million subscribers, reflecting an almost 8% year-over-year increase, despite the stock's decline.
- Surge in Ad Revenue: Ad revenue skyrocketed 2.5 times to $1.5 billion, with management projecting it to double this year, indicating rapid growth in Netflix's ad business, which may become a primary revenue driver in the future.
- Regional Revenue Growth: Revenue in the U.S. and Canada jumped 18% to $5.3 billion, while EMEA revenue also increased 18% to $3.9 billion, showcasing Netflix's strong performance in global markets, even as its stock faces pressure.
- Cautious Future Outlook: Netflix forecasts a 15% revenue increase in Q1, with full-year revenue expected between $50.7 billion and $51.7 billion, indicating a slowdown in growth, but an increase in operating margin to 31.5% should support strong EPS growth.
Analyst Views on NFLX
Wall Street analysts forecast NFLX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NFLX is 129.47 USD with a low forecast of 92.00 USD and a high forecast of 152.50 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
38 Analyst Rating
27 Buy
9 Hold
2 Sell
Moderate Buy
Current: 83.540
Low
92.00
Averages
129.47
High
152.50
Current: 83.540
Low
92.00
Averages
129.47
High
152.50
About NFLX
Netflix, Inc. is a provider of entertainment services. The Company acquires, licenses and produces content, including original programming. It provides paid memberships in over 190 countries offering television (TV) series, films and games across a variety of genres and languages. It allows members to play, pause and resume watching as much as they want, anytime, anywhere, and can change their plans at any time. The Company offers members the ability to receive streaming content through a host of Internet-connected devices, including TVs, digital video players, TV set-top boxes and mobile devices. It is engaged in scaling its streaming service, such as introducing games and advertising on its service, as well as offering live programming. It is developing technology and utilizing third-party cloud computing, technology and other services. The Company is also engaged in scaling its own studio operations to produce original content.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
