Do you think it’s too late to buy Netflix? This is the biggest reason why we still have time.
Stocks Netflix (NASDAQ: NFLX) It surged to record highs after its first quarter revenue report exceeded Wall Street expectations. During the period ending March 31st, the streaming giant increased its revenue by 13% year-on-year. Earnings per share (EPS) reached an all-time high of $6.61, up 25% from the last quarter.
As the stock price has risen 71% over the past year at the time of this writing, some investors may assume it’s too late to buy Netflix. However, this idea runs the risk of overlooking the big picture, as the company’s outlook is strengthened by several basic tailwinds.
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Here are some reasons why you still have time to buy stocks Netflix.
On all accounts, Netflix is running at maximum volume.
Management cites the continued growth of new memberships, supporting higher margins and revenues worldwide as subscription prices gradually rise. He is also optimistic that the industry-leading exclusive series and film slates are attracting viewers. In particular, Netflix has seen a positive response to pushing to live events, such as boxing matches and weekly WWE Pro Wrestling.
Perhaps the biggest development is the successful expansion of the tier supported by Netflix ads, bringing together a wider subscriber combination while opening new revenue streams.
Netflix CO-CEO Gregory Peters highlighted that the company “just started” to take advantage of its owners adtech In a global advertising market with an estimated $600 billion. Although it is still a relatively small part of the business compared to subscriptions, AdTech is now a key growth driver.
Netflix in 2025 targets revenues of $43.5 billion to $445 billion, representing a strong 13% increase in midpoint forecast compared to 2024. The 29% operating profit margin forecast is far superior to the 26.7% results last year. This dynamic highlights important development. Netflix is more profitable than ever and could power the next phase of its stock rallies. Netflix stocks are the perfect choice for investors to buy and hold a diverse portfolio.
Consider this before purchasing stock on Netflix.
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