Insights on NFLX
Current Price: $1241.35
+0.23%
on October 21, 2025
Netflix, Inc. is a leading entertainment services provider, specializing in video streaming and gaming experiences for leisure time. Founded in 1997 by Marc Randolph and Reed Hastings, the company is headquartered in Los Gatos, California. With operations across the United States and internationally, Netflix continues to innovate and expand its offerings, captivating audiences worldwide with diverse entertainment options.
📰 Recent Developments
Netflix Inc. announced its third-quarter 2023 financial results, revealing a net addition of 8.76 million paid memberships, bringing the global total to 247.15 million. Revenue increased 7.4% year-over-year to $8.54 billion, while operating income rose 28% to $2.04 billion. The company emphasized strong performance in its advertising-supported subscription tier, which grew to 5 million users.
Netflix launched a new live sports streaming event with the Netflix Cup, featuring Formula 1 drivers and PGA Tour golfers, marking its expansion into real-time programming. The company also introduced enhanced mobile gaming features, integrating more titles directly into its app for subscribers.
Operationally, Netflix expanded its content production footprint by opening a new studio facility in Europe to support local original series. No major management changes or acquisitions were disclosed during this period.
📊 Earnings Report Summary
Netflix, Inc. reported strong Q3 2025 financial results, with revenue reaching $11.51 billion, a 17% increase from $9.82 billion in Q3 2024. Operating income rose 12% to $3.25 billion, despite a slight decline in operating margin to 28.2% due to a $619 million expense from Brazilian tax authorities. Net income increased by 8% to $2.55 billion, with diluted earnings per share (EPS) rising 9% to $5.87.
The quarter showcased significant membership growth and a record-high view share in the US and UK. Successful content releases, including *KPop Demon Hunters*, contributed to revenue growth, alongside a doubling of ad sales commitments in the US. Free cash flow improved to $2.66 billion. For Q4, Netflix anticipates a 17% revenue increase, projecting full-year revenue of $45.1 billion, reflecting a 16% year-over-year growth.
📈 Technical Analysis
Daily Price Change: +0.23%
Technical Indicators
| Metric | Value |
|---|---|
| Current Price | $1241.35 |
| Daily Change | 0.23% |
| MA20 | $1201.76 |
| MA50 | $1214.54 |
| MA200 | $1111.99 |
| 52W High | $1341.15 |
| 52W Low | $736.23 |
| % from 52W High | -7.44% |
| % from 52W Low | 68.61% |
| YTD % | 39.99% |
| BB Position | 90.96% |
| RSI | 58.66 |
| MACD | 3.14 |
The current price of $1241.35 reflects a modest daily change of 0.23%. Positioned near the 52-week high of $1341.15, the asset is currently 7.44% below this peak, while being 68.61% above its 52-week low of $736.23, indicating strong upward momentum over the past year. Moving averages show that the 20-day MA at $1201.76 is above the 50-day MA ($1214.54) and significantly above the 200-day MA ($1111.99), suggesting a bullish trend. The price is also situated within the upper Bollinger Band ($1250.09), indicating potential overbought conditions. The RSI at 58.66 supports this, suggesting the asset is neither overbought nor oversold. Additionally, the MACD of 3.14 indicates positive momentum, reinforcing the bullish outlook. Overall, the metrics suggest a strong performance with room for further gains.
💰 Earnings History
| Earnings Date | EPS Estimate | Reported EPS | Surprise(%) | Event Type |
|---|---|---|---|---|
| 2025-04-17 | 5.71 | 6.61 | 15.76 | Earnings |
| 2025-01-21 | 4.2 | 4.27 | 1.74 | Earnings |
| 2024-10-17 | 5.12 | 5.4 | 5.55 | Earnings |
| 2024-07-18 | 4.74 | 4.88 | 2.89 | Earnings |
| 2024-04-18 | 4.52 | 5.28 | 16.75 | Earnings |
| 2024-01-23 | 2.22 | 2.11 | -4.83 | Earnings |
| 2023-10-18 | 3.49 | 3.73 | 6.95 | Earnings |
| 2023-07-19 | 2.86 | 3.29 | 15.02 | Earnings |
The earnings data reveals a generally positive trend in earnings per share (EPS) performance over the observed periods, with several notable surprises. In the most recent quarter (April 2025), the reported EPS of 6.61 exceeded the estimate of 5.71 by 15.76%, indicating strong operational performance. This pattern of exceeding estimates continues throughout the prior quarters, with significant surprises noted in April 2024 (16.75% above estimate) and July 2023 (15.02% above estimate).
However, there are also instances of underperformance, such as in January 2024, where the reported EPS fell short of the estimate by -4.83%. Despite this, the overall trajectory suggests a recovery and growth in EPS, particularly in the latter half of 2024 and into 2025. The increasing EPS figures, coupled with consistent positive surprises, indicate a robust financial health and operational efficiency, which may bolster investor confidence moving forward.
⭐ Analyst Ratings
| Date | Status | Outer | Rating | Price |
|---|---|---|---|---|
| 2025-10-07 00:00:00 | Upgrade | Seaport Research Partners | Neutral → Buy | $1385 |
| 2025-09-17 00:00:00 | Upgrade | Loop Capital | Hold → Buy | $1350 |
| 2025-07-10 00:00:00 | Reiterated | KeyBanc Capital Markets | Overweight | $1070 → $1390 |
| 2025-07-07 00:00:00 | Downgrade | Seaport Research Partners | Buy → Neutral |
Recent rating changes reflect a dynamic shift in market sentiment towards specific stocks. Notably, two upgrades from Seaport Research Partners and Loop Capital indicate increasing investor confidence, with both firms moving their ratings from Neutral to Buy and Hold to Buy, respectively. This suggests a positive outlook on the underlying fundamentals or growth potential of the companies in question, with price targets set at $1385 and $1350.
In contrast, KeyBanc Capital Markets reiterated its Overweight rating while raising its price target from $1070 to $1390, reinforcing a bullish stance on the stock’s performance.
However, the downgrade from Seaport Research Partners, shifting from Buy to Neutral, introduces a note of caution. This mixed sentiment highlights the volatility and uncertainty in the market, where some analysts see potential upside while others are more cautious. Overall, these rating changes illustrate the complex landscape investors navigate, influenced by varying assessments of market conditions and company performance.
Disclaimer
The content on MarketsFN.com is provided for educational and informational purposes only. It does not constitute financial advice, investment recommendations, or trading guidance. All investments involve risks, and past performance does not guarantee future results. You are solely responsible for your investment decisions and should conduct independent research and consult a qualified financial advisor before acting. MarketsFN.com and its authors are not liable for any losses or damages arising from your use of this information.
