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Netflix Reports Record Subscriber Gains as Stock Soars
Netflix earnings beat by $0.07, as revenue tops estimates
Netflix reaffirmed its dominance of the streaming video market on Tuesday, as its mixture of live sporting events, popular returning series - and singular moments, such as a football halftime performance by Beyonce - helped attract a record number of subscribers over the holiday quarter.
The company added 18.9 million subscribers in its fourth quarter to bring its total global subscriber base to nearly 302 million customers - a number that dwarfs its Hollywood streaming rivals.
We sat down with Thomas Monteiro, senior analyst at Investing.com to discuss the numbers:
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"It was clear that Netflix was in the perfect position to deliver its last report on subscriber numbers with a boom. However, this was above our best expectations, testifying to the continued success of the company's global, high-margin turnaround strategy on both the financial and consumer interest sides.
"Not only did Netflix manage to bring sustained global interest in the core business without burning through the same type of cash as the competition, but it also showed fantastic momentum on the live events front, which remains an area of the market where streaming has massive room to grow.
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"Yes, there was a lot of backing from the ad-supported membership, which is somewhat better for the company in the long run for subscriber growth than for the actual profitability fronts, particularly against a struggling ad market. So, it will be very interesting to see in the quarters ahead how the company plans to keep the tailwinds going, having to rely solely on financial metrics.
"But the main point here is that Netflix cleared an important hurdle preying on investors' minds: Can the company keep its margins healthy against incoming pressures from a strong US dollar and rising inflation? This should shape the 2025 financial environment for the company. And the answer is a clear yes. There's a lot of ground to be gained in 2025, particularly on the live events front, and the company's pricing power appears to remain nearly intact."
