Leading streaming subscription service Netflix (Nasdaq: NFLX) is among the top-performing stocks in the US equity markets in 2024. The stock doubled investor’s money in a year by rising 100% in the charts from October 2023 to 2024. Now with 2025 around the corner, The stock is looking to continue overperforming and reach $43 billion in 2025 revenue, according to predictions.
Netflix had a great Q3, exceeding analyst expectations in terms of stock value and the company’s performance. Shares have jumped 11% since the Q3 earnings report went live. Netflix generated $9.8 billion in revenue in Q3, up 15% year over year. In addition, it was supported by a 14.4% rise in subscribers compared to Q3 2023. Furthermore, its ad-based tier has given surprisingly positive results. Membership sign-ups for this option were up 35% quarter over quarter, with engagement continuing to rise.
Management expects sales to total $38.9 billion in 2024 and between $43 billion and $44 billion in 2025. “The majority of growth next year, we expect to be membership-driven growth,” CFO Spence Neumann said on the Q3 2024 earnings call. This will be supported “by both improving our core series and film offering while investing in new growth initiatives like ads and gaming,” the shareholder letter reads.
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If Netflix were to reach this 2025 goal, it would mean a compound annual revenue growth rate of 20.4% between 2015 and 2025. Since Netflix shares hit their recent low point in the spring of 2022, they have come roaring back, rising 322% in the past 29 months. Shares are also up 57% just this year
Netflix’s good Q3 made stock investors happy. The stock price is near its highest ever. As streaming changes, Netflix must keep adapting to stay on top. They’re trying to balance getting more subscribers with making more money. They’re also working on ads and looking for new ways to earn.
