NFLX - Netflix Q4: A Blowout Earnings Report (Rating Upgrade)

2024-01-29 04:30:19 ET

Summary

• Netflix added 13.1M new subscribers in Q4, outperforming expectations.
• The streaming company achieved double-digit top line growth and saw accelerating subscriber net-adds.
• Netflix's free cash flow soared 376% YoY. FCF margins are looking very good.
• The streaming company announced a major deal with WWE, entering the live sports entertainment market.
• Shares are expensive, however.

Streaming company Netflix ( NFLX ) reported results for its fourth quarter on Tuesday and submitted a blockbuster earnings sheet as the holiday season, typically a strong one for streaming in general, resulted in the addition of 13.1M new subscribers. Netflix missed on earnings, however, but this didn’t deter investors from piling into the streamer’s shares: Netflix was up 11% in response to the earnings report on Wednesday. The streaming company also announced a major deal with wrestling organization WWE which could attract an entirely new audience to the platform in the future. Price increases have also had an effect, resulting in a strong free cash flow upswing for Netflix. I am still not convinced on the valuation, but I acknowledge that Netflix has been able to grow much faster than expected in all key metrics, including subscribers, revenues and free cash flow!...

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