Bloomberg Intelligence Netflix Tops Earnings Estimates, as Market Takes a Pause
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Jul 18, 2025 In this engaging discussion, Catherine Doherty, a Bloomberg Finance Reporter, and Geetha Ranganathan, a Bloomberg Intelligence Analyst focused on US Media, dive into Netflix's impressive earnings report, which revealed $11.1 billion in revenue and $7.19 per share earnings. They analyze Netflix's strategies for growth, including content expansion and live events, alongside a look at how the market responded to these results. The conversation also touches on American Express's performance and its influence on consumer spending trends. It's a must-listen for finance enthusiasts!
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Netflix Solid But Not Exceptional
- Netflix's solid earnings met expectations but did not exceed them to justify its high valuation.
- Investors expected a bigger catalyst to push the stock price higher after such lofty market price multiples.
Netflix's Multi-Pronged Growth Plan
- Netflix's growth strategy involves a mix of blockbuster content, live events, price increases, and expanding its advertising business.
- Advertising is expected to become a significant revenue driver, potentially 10-15% of total revenue by 2026.
Netflix's Strong Pricing Power
- Netflix holds strong pricing power due to high engagement and a broad content portfolio.
- Subscribers watch Netflix content for about two hours daily, supporting continued price increases.