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Shares of Netflix (Nasdaq: NFLX) are trading at all-time highs after the streaming giant announced fourth-quarter 2024 results that beat expectations. The company reported quarterly earnings of $4.27 per share, a 102% year-over-year increase, with sales growing 16% to $10.25 billion while adding 18.91 million new subscribers bringing the total to 301.63 million worldwide. Netflix doubled its profits compared to the same time last year by bringing in more revenue from subscriptions and ads.
Speaking of ads, Netflix’s advertising business is booming—the streaming giant made twice as much money from ads in 2024 as it did the year before, and they expect the ad revenues to double again in 2025. With advertising as a catalyst, analysts believe Netflix’s stock still has room to grow.
In addition, Netflix has been raising prices in some regions to fund new shows and movies which is helping their bottom line.
Netflix closed at $984 a share on Thursday climbing 13% over the last two trading days. The company’s market capitalization is $420 billion. A year ago, the stock was trading at $544 a share.
