NFLX - Netflix: The Acceleration Powerhouse Is Setting In

2024-07-19 23:24:55 ET

Summary

• Netflix's recent Q2 earnings print showed accelerating revenue yet again, driven by price increases as well as robust subscriber adds.
• The company is planning to eliminate its basic $11.99/month ad-free plan, widening the gap between ad-free and ad-supported memberships.
• Operating margins are also rising sharply, and Netflix's EPS is growing at a >40% clip.
• Watch out for Netflix's valuation at ~32x FY25 EPS, but the stock still looks attractive due to its incredible earnings growth.

Barely a few months ago, investors were fretting over Netflix’s ( NFLX ) (NFLX:CA) decision to stop subscriber reporting. Today, the stock is sitting near YTD highs as the market might be wondering if subscriber counts truly matter when Netflix’s revenue and margins continue to see massive improvements quarter over quarter....

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