Netflix Q4 2024 earnings preview: what to expect
Streaming giant Netflix reports Q4 2024 earnings on 21 January. Here's what analysts forecast for subscriber growth, revenue, and strategic initiatives.
Netflix earnings - what are analysts forecasting?
Netflix is expected to report adjusted earnings per share of $4.233, marking a substantial 69.2% increase from the previous year. Trading signals indicate strong momentum heading into the results.
Revenue forecasts point to $10.118 billion, representing 13.5% year-over-year (YoY) growth. This expansion has been driven by successful content releases and the growing impact of the advertising tier.
Analysts anticipate adjusted net income of $1.83 billion and EBITDA of $2.364 billion, highlighting the company's improving profitability metrics and operational efficiency.
The streaming giant's shares have shown resilience, with investors focused on subscriber growth and margin expansion potential.
Subscriber growth expectations beat previous guidance
Netflix's third quarter (Q3) performance saw 5.1 million net subscriber additions, setting a strong foundation for the fourth quarter (Q4). Share trading volumes have increased as investors eye potential upside.
Q4 subscriber additions could double the Q3 figure, driven by compelling content including live NFL games and "Squid Game" Season 2.
The company's decision to stop reporting subscriber metrics after Q4 2024 signals a strategic shift toward emphasising financial performance metrics.
Market watchers can track Netflix's performance through various trading platforms offering real-time data and analysis.
Content strategy and live sports expansion
Netflix's venture into live sports represents a significant evolution, with successful NFL game streams and the "Tyson vs. Paul" event. Online trading activity has increased around these initiatives.
The platform's 2025 content lineup includes WWE programming and new seasons of hit shows like "Stranger Things" and "Wednesday."
Content investments are balanced against cost management, supporting the company's margin expansion goals for 2025.
Investors can access Netflix through CFD trading.
Profitability outlook and margin expansion
Operating margin guidance stands at 27% for 2024, with projections reaching 28% in 2025. Traders can monitor these metrics through trading alerts.
The company's focus on operational efficiencies and disciplined content spending continues to support margin growth.
Revenue guidance for 2025 suggests 11-13% growth, with potential upside from pricing strategies and advertising initiatives.
Investors seeking exposure can consider various approaches through a trading account.
Netflix stock price – technical analysis
The long rally in Netflix stock has continued over the past year, with the stock price hitting a record high in December. Since mid-December the price has fallen around 11%, but this leaves it above the late October high.
For the time being, the procession of higher highs and higher lows remains in place, and could continue to help support the share price. The recent pullback is the longest period of poor performance since July, but the longer-term uptrend is intact.
Netflix daily shares chart
How to trade Netflix earnings
Before trading Netflix earnings, thoroughly research the company's fundamentals and technical indicators.
Consider whether you want to take a short-term position around earnings or a longer-term investment approach.
Open an account with us to access Netflix shares through various trading methods.
Place your trades based on your analysis and risk management strategy.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
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