Netflix Soars to New Highs on Record Subscriber Growth

Netflix shares surged to a new all-time high on Wednesday, driven by a strong fourth-quarter earnings report that significantly exceeded market expectations. The streaming giant added a record 18.9 million subscribers, boosting revenue and earnings well above analyst forecasts.

This impressive performance ignited a wave of optimism among investors, leading to a significant increase in the company’s stock price.

Revenue for the quarter reached $10.25 billion, surpassing analyst estimates. Earnings per share also exceeded expectations, coming in at $4.27.

Netflix attributed its subscriber growth to a combination of factors, including successful live events such as the Jake Paul vs. Mike Tyson boxing match and the return of popular shows like “Squid Game.” While live sports contributed to subscriber growth, Netflix emphasized that no single event was the primary driver.

To capitalize on its growing subscriber base, Netflix announced a price increase for its ad-supported plan, raising it from $6.99 to $7.99. The ad-free Standard plan will now cost $17.99, and the Premium plan will increase to $24.99.

Despite the price increases, Netflix maintained its strong growth trajectory, with advertising revenue doubling in 2024 and projected to double again in 2025. However, the company acknowledges that advertising revenue will not become a primary revenue driver until 2026.

Netflix also announced a $15 billion stock buyback program and raised its full-year revenue guidance. The company now expects 2025 revenue to be between $43.5 billion and $44.5 billion.

While facing intense competition from other streaming platforms and traditional entertainment companies, Netflix remains confident in its ability to maintain its market position through continued investment in content and product innovation.