Netflix’s latest earnings and surprisingly stable outlook defy the souring economy and plummeting consumer confidence
Netflix shares increased by more than 4 % in after -sales trading on Thursday after the results of the giant’s profits in the first quarter exceeded Wall Street’s expectations and the company has repeated its positive commercial expectations despite the consumer confidence in the United States historically low.
In issuing its profits on Thursday, the company said, “We still grow our revenues and profits, with no change in our 2025 guidance expectations to obtain revenues.”
Netflix’s confidence is likely to encourage some investors, who were affected by some shares, especially in retail and clothing markets, amid the severe economic uncertainty ignited by the Trump administration’s escalating trade war with China.
Greg Peters, participating in Netflix, said in a profit call that the company was not largely affected by these economic turmoil. While the leadership pays close attention to the economy, he said: “There is nothing really important for observation,” while the levels of retaining customers remain stable and sharing with Netflix offers that remain strong.
Executive officials have argued that Netflix benefits from entertainment spending often less affected during the economic shrinking period. They also paid the idea that the company’s wide subscription plans group – including one with ads for $ 8 per month – gives customers flexibility if they want to save money. They admitted that the advertisement, which is a relatively new work for Netflix, may be somewhat weak as marketers reduced the costs. But the work is still a very small part of the company’s total revenues, and new advertising tools make purchasing ads on the service more attractive to many advertisers, thus compensating for any weakness.
For a quarter, Netflix beat analysts’ expectations for both revenues and profit. The total revenue amounted to $ 10.54 billion compared to estimates of 10.51 billion dollars, while the profits of one share of $ 6.61 detonated the estimates of the analysts of $ 5.71.
The issuance of profits represented the first time that Netflix had not been able to know the quarterly numbers – a decision that made it clear in the past year by saying that the subscribers’ numbers no longer tell the most important story from work, which now has different levels of subscribers and increasing advertising actions.
the Wall Street Journal She recently mentioned that the company is still confident in its five -year plan to raise the market ceiling to a trillion dollars. Along the way, the company expects To double its revenues and three times its operating income by 2030. The broadcast service also hopes to develop its advertising sales to 9 billion dollars annually during the same time frame.
And leading the company’s content in the first quarter by the separate miniseries Teenage, Which says Netflix is the third English language series that is watched in all ages.
In the last quarter of reporting the growth of the number of subscribers in the fourth quarter, Netflix said it added more than 18.9 million members worldwide. The company also announced at the time that its standard plan will increase to $ 17.99 per month.
The NETFLIX private version of the Amazon budget wheel is still revolving, and at least so far, it has not been prevented by a possible imminent economic crisis yet.
This story was originally shown on Fortune.com
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2025-04-17 21:12:00
