Latest news with #Paul-Tyson
Yahoo
27-05-2025
- Business
- Yahoo
3 Key Reasons to Buy Netflix Stock Beyond its 33% Year-to-Date Surge
Netflix NFLX has already delivered impressive returns to investors in 2025, with shares climbing 33% year to date, significantly outpacing other streaming competitors like Apple AAPL, Amazon AMZN, and Disney DIS, as well as the broader Zacks Consumer Discretionary sector and the S&P 500. Shares of Apple, Disney and Amazon have lost 22%, 1.5% and 8.4%, respectively, in the same time savvy investors shouldn't let this stellar performance deter them from considering the streaming giant as a long-term investment opportunity. Netflix has set its sights on an ambitious target that has caught the attention of investors worldwide: doubling its revenues by 2030 and achieving a $1 trillion market discuss three fundamental reasons why Netflix stock remains an attractive buy, even after its significant appreciation. Image Source: Zacks Investment Research Netflix recently showcased a remarkable ability to exceed expectations across key financial metrics. The streaming leader delivered earnings per share of $6.61, crushing analyst estimates of $5.68 by an impressive 16.37%. This substantial beat wasn't a one-time occurrence but represents a consistent pattern of outperformance, with Netflix surpassing EPS expectations in four consecutive growth remained robust at $10.54 billion, slightly above the $10.50 billion consensus estimate. More importantly, the company maintained its strong operational discipline, guiding for a 29% operating margin for the full year while projecting $8 billion in free cash flow for 2025. This financial strength provides Netflix with substantial flexibility to continue investing in content while returning cash to shareholders through share Zacks Consensus Estimate for NFLX's 2025 revenues is pegged at $44.46 billion, indicating 13.99% year-over-year growth. The consensus mark for earnings is pegged at $25.32 per share, indicating a 27.69% increase from the previous year. Image Source: Zacks Investment Research See the Zacks Earnings Calendar to stay ahead of market-making company's member retention and acquisition trends remain healthy, with Co-CEO Greg Peters noting that retention characteristics for new subscribers joining during major live events like the Paul-Tyson fight and NFL Christmas Day games mirror those of members who join for other premium content. This indicates Netflix's ability to convert event-driven viewers into long-term subscribers, creating sustainable growth momentum. Netflix's advertising business represents perhaps the most compelling growth catalyst for the company's future. Management expects advertising revenues to roughly double in 2025, driven by the successful rollout of their proprietary ad technology platform across key markets. The company has already launched its first-party ad tech suite in Canada and the United States, with the remaining 10 ad-supported markets scheduled for rollout in the coming technological advancement provides Netflix with unprecedented control over the advertising experience, enabling more sophisticated targeting capabilities and improved buyer experiences. The platform now offers targeting based on Netflix's unique data, including life stage, interests, and viewing mood, while also supporting advertisers' own onboarded audiences and third-party vendor segments. Co-CEO Peters emphasized that this enhanced targeting capability, combined with Netflix's vast content library, creates superior campaign outcomes for advertisers while improving the member advertising opportunity extends far beyond current achievements. Netflix represents only about 6% of consumer spend and ad revenues in the markets it serves, indicating massive room for expansion. With the company's relatively small current advertising footprint providing insulation from broader market softness, Netflix is well-positioned to capture increasing market share as its ad platform matures and advertisers recognize the platform's unique value proposition. Netflix's content strategy continues to evolve and strengthen, with recent announcements demonstrating the company's commitment to premium storytelling across diverse genres and markets. The partnership with Dan Brown for a new Robert Langdon thriller series, co-created with acclaimed showrunner Carlton Cuse, exemplifies Netflix's ability to attract top-tier creative talent and proven intellectual properties. Brown's Langdon series has sold 250 million copies globally and been translated into 56 languages, providing a ready-made international company's global content investment strategy remains robust, with Co-CEO Ted Sarandos highlighting recent commitments, including $1 billion in Mexican production, $2.5 billion in Korean content, and continued expansion across 50 countries worldwide. This localized content creation not only serves regional audiences but also travels globally, creating additional value from each live programming strategy continues to gain traction, with successful events like the Taylor-Serrano fight in July and the expansion to all-day NFL football on Christmas Day 2025. These events generate outsized conversation, acquisition, and retention benefits while commanding premium advertising rates. The company's ability to blend live sports and entertainment with its core on-demand offerings creates a differentiated value proposition that competitors struggle to match. Netflix's combination of strong financial performance, revolutionary advertising capabilities, and expanding content moat positions the company for continued success. While Netflix trades at a premium with a forward 12-month P/S ratio of 10.84 compared to the broader Zacks Broadcast Radio and Television industry's forward earnings multiple of 3.7, this valuation appears justified given the company's unique position at the intersection of technology and entertainment. Netflix's ability to outcompete both traditional media companies and tech giants speaks to its exceptional business model and execution. Image Source: Zacks Investment Research Investors seeking exposure to the streaming leader should consider Netflix's proven execution ability and multiple growth vectors that extend well beyond its impressive year-to-date performance. NFLX currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Forbes
07-05-2025
- Entertainment
- Forbes
Netflix's Big Interface Revamp Gives More Info, Better Search, A Dash Of TikTok
(Image courtesy of Netflix) Netflix today announced the biggest overhaul in more than a decade of its consumer interface, adding both a cleaner look and more information about each show, much smarter AI search tools that can understand fuzzy concepts such as a 'vibe,' and a flexible structure that can better showcase the company's burgeoning interest in video games, live events, sports and other new kinds of content. And just to stay au couran t, new vertical video components for mobile users will make it easier for fans to scroll through trailers and clips, watch the full show or share the material with others. It feels just a bit like the endless, and hugely successful, scroll of micro-video site TikTok, one of Netflix's biggest competitors for audience view time. 'We think it's time to take a giant leap forward,' said Netflix Chief Product Officer Eunice Kim. The new interface is 'simpler, more intuitive, and better represents the breadth of entertainment available' on the company's sprawling site. 'The current TV experience is built for shows and movies,' Kim said. 'This is designed for the future.' But Kim and Chief Technology Officer Elizabeth Stone said in a tech briefing that it was time for the interface to catch up with Netflix's shifting array of programming, while making search more responsive and smarter. Also key: reducing the 'eye gymnastics' that users must go through when scanning for information about a show. The cleaner look, with additional pertinent information on screen at a glance, should help simplify the decision-making process. The new interface will be rolling out globally beginning today, Kim said. Key shortcuts, such as the My Netflix tab, which features reminders and "continue watching" tabs, will now be displayed on the top of the screen, in a more prominent position. In the past year, the company has moved aggressively into more live events and sports. It drew roughly 65 million viewers worldwide for an exhibition boxing match between influencer Jake Paul and aging former heavyweight champion Mike Tyson. That huge influx of viewers for one show strained Netflix's servers, and caused complaints of glitches and service interruptions. The Paul-Tyson streaming headaches last fall were largely solved several weeks later, when Netflix streamed two NFL regular-season football games without a hitch (or, admittedly, not anywhere near as many peak viewers). But the company continues to increase its investments in live events, which require different network architectures to handle peak demand. As well, a live event typically comes from a specific location on the globe, but must be able to reach relatively quickly every corner of the planet where Netflix operates. Those demands will only increase. Early this year, the company began showing WWE's RAW weekly program, with its ardent fan base, and continues to do more live shows such as Everybody's Live with John Mulaney, a revisionist weekly talk show. It also has extended its deal with the NFL, and is known to be looking at other kinds of live events and sports. To accommodate those shifts into live sports and events, that means the interface needed a better reminder system to let interested viewers know, for instance, when an event is starting or reaching a crucial moment, Kim said. 'We need to let you know when to tune in to live games,' Kim said. 'We need better ways to feature elements on the home page. And (the interface) needs to pull you into the thrill of watching or playing the show at exactly the right time.' Netflix Chief Product Officer Eunice Kim (l) and Chief Technology Officer Elizabeth Stone (r) during ... More a briefing on the site's new interface. (Screenshot by David Bloom) The company also needs to adjust to the demands video games, where it has slowly been growing its investments in increasingly sophisticated games that can be resource-intensive and hold a viewer's attention for far longer than many shows. To further adjust to the demands of live programming, Stone said the company will be adding more peak-demand capabilities to its long-time distribution backbone, called OpenConnect. Helping audiences navigate seemingly endless program choices and quickly find something they'd like to watch is a challenge facing all the streaming services, especially as libraries grow and competition for viewers gets more difficult. Netflix has generally been considered one of the best in serving its 700 million or so audience members what they want. The mobile interface is getting new ways to browse content, swiping up through a vertical feed and letting people browse clips and trailers. A new mobile feature called Moments will let viewers save, rewatch and share clips. 'All these features are about getting people to press play and to stay,' Kim said. The new search functions will move beyond the machine-learning tools the company has used for several years. With those, the algorithm basically says because someone liked one show, here are some other shows that other fans of that show also liked. The company is exploring ways to use generative AI and responsive search tools to pull in 'more signals, so we can do a better job with titles you might love,' Stone said. 'It will just be magically easier to find something to watch.' Generative AI tools will be able to use 'natural conversational phrases, like 'I want something upbeat and funny,'' to serve up options with that kind of vibe. Recommendations will be highly personalized, Stone said, giving a comparison between her list of recommended shows and those of Kim as an example of two relatively similarly situated professional women living in the Bay Area might have very different tastes. 'It's not exactly what you'd expect,' Stone said of their differing programming preferences. 'We're both tech nerds living in Silicon Valley.' But if the search engine kept recommending the same set of shows to both, 'eventually we'd be frustrated and go somewhere else.' For the company's hundreds of millions of international viewers, AI will also generate personalized title information for more languages around the world. In late April, the company introduced a subtle option for viewers opting to watch a show with subtitles in the original language, so that it will only show the translations of spoken dialogue rather than versions of sound effects, music cues, and other audio information that's part of Subtitles for the Deaf and Hard of Hearing, or SDH. It debuted with the launch of Season 5 of the serial killer series You, and will roll out across all Netflix originals going forward. Somewhat surprisingly, the new interface won't really show anything different, at least initially, to viewers on its new-ish ad-supported basic tier compared to those on more expensive ad-free offerings, Kim said. 'We hope this makes both members and advertisers excited about Netflix,' Stone said.
