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Globe and Mail
23-07-2025
- Business
- Globe and Mail
AT&T Reports Strong Second-Quarter Financial Performance
Company delivers robust, high-quality 5G and fiber subscriber growth as more customers choose converged connectivity services DALLAS, July 23, 2025 /CNW/ -- AT&T Inc. (NYSE: T) reported strong second-quarter results that demonstrate its ability to grow the right way by attracting high-quality 5G and fiber subscribers, while growing service revenues, resulting in improved consolidated revenues and earnings growth.
Yahoo
16-07-2025
- Business
- Yahoo
Dear Netflix Stock Fans, Mark Your Calendars for July 17
Netflix (NFLX) has come a long way from mailing red-envelope DVDs, becoming a global giant in subscription streaming. Now, as a more mature media powerhouse, it continues to evolve, fueling growth through its ad-supported tier, password-sharing crackdown, and bold moves into live content. With second-quarter earnings season heating up, the streaming giant is one of the key names set to report Q2 2025 results on Thursday, July 17. The Q2 results could play a pivotal role in shaping NFLX stock's near-term trajectory, especially as investor sentiment turns cautious after a recent downgrade over valuation concerns. With much of the recent optimism already priced in, Wall Street will be laser-focused on subscriber growth, ad revenue momentum, and forward guidance. Dear Nvidia Stock Fans, Mark Your Calendars for July 16 How to Buy Tesla for a 13% Discount, or Achieve a 26% Annual Return Retirement Ready: 3 Dividend Stocks to Set and Forget Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! For Netflix stock fans, July 17 is not just another earnings date. It is a critical checkpoint in the company's ongoing growth story. Netflix is a global leader in media and entertainment, commanding a market capitalization of approximately $537 billion. The company has evolved into a dominant streaming platform and continues to innovate through its ad-supported tier, password‑sharing monetization efforts, and expansion into live content such as sports and interactive experiences. As Netflix targets a $1 trillion valuation by 2030 through international expansion, advertising growth, and other initiatives, its near-term trajectory remains highly sensitive to Q2 earnings performance and forward guidance. So far in 2025, Netflix has delivered a standout performance, with NFLX stock surging 41% year‑to‑date (YTD), dramatically outpacing the broader S&P 500 Index's ($SPX) gains of 6%. The stock's powerful rally pushed shares to a 52-week high of $1,341.15 on June 30, before a modest pullback this month. While positive business momentum boosted the share price, mixed sentiments from analysts introduced some short-term volatility. From a valuation standpoint, NFLX stock is priced at 49 times forward adjusted earnings and 13.6 times forward sales, clearly a premium compared to both its historical averages and sector peers. But the premium is starting to look justified. With innovative moves into ads, gaming, and more, Netflix is expanding its turf. As new revenue engines fire up, that steep valuation could turn from red flag to runway for long-term growth believers. Netflix reported its Q1 2025 earnings on April 17, delivering a robust financial performance that exceeded some market expectations. Revenue came in at $10.5 billion, representing 12.5% year-over-year (YOY) growth. Operating income surged 27% annually to $3.3 billion, while operating margin expanded to a striking 31.7%, highlighting strong cost discipline. Netflix posted EPS of $6.61, a 25% increase from the prior-year quarter and topping analyst forecasts. Notably, this quarter marked the company's first earnings report without disclosing subscriber counts, a strategic shift toward emphasizing revenue growth and profitability. Netflix also highlighted a standout content slate, with its series Adolescence and films Back in Action, Ad Vitam, and Counterattack all entering its 'all-time most popular' rankings. Moreover, the company successfully launched its ad tech platform in the U.S., with a broader rollout planned for other ad-supported territories. In the live content arena, WWE RAW debuted on Netflix during Q1, consistently securing a spot in the global Top 10. Netflix's Q2 2025 results are due on July 17, with management guiding for continued revenue and margin strength. The company expects Q2 revenue of about $11.04 billion, representing a 15% YOY increase. Plus, it targets an operating margin of 33.3%, up from 31.7% in Q1. EPS for the quarter is estimated to be $7.03. Management also anticipates advertising revenue to double in fiscal 2025, building on the initial success of its ad‑supported tier. The firm underscores that ad monetization, global price adjustments, and momentum in live sports content are key catalysts expected to bolster performance. The company has reaffirmed its full-year 2025 targets, expecting revenue between $43.5 billion and $44.5 billion as well as an operating margin of 29%. Wall Street consensus mirrors management's upbeat tone, with analysts forecasting Q2 EPS to grow by 45% YOY to $7.06. For fiscal 2025, analysts anticipate EPS to jump 28% annually to $25.42, then climb another 22% to $31.14 in fiscal 2026. Needham and KeyBanc have recently adopted a more bullish tone on Netflix, raising their price targets and reinforcing their ratings. Needham reaffirmed its 'Buy' rating and increased the target from $1,126 to $1,500, citing Netflix's exceptional labor productivity. Meanwhile, KeyBanc maintained its 'Overweight' stance and raised its price target from $1,070 to $1,390, attributing the uplift to the potential for sustained low-double-digit revenue growth driven by initiatives like live events, price increases, and advertising expansion. In contrast, Seaport Global Securities shifted to a 'Neutral' rating from a 'Buy,' suggesting that much of Netflix's upside may already be factored into current valuations. The firm indicated less than 10% upside potential from current levels. Citi also maintained a 'Neutral' rating with a $1,250 price target, noting that Q2 revenue and operating income are expected to just slightly exceed consensus. Netflix stock has a consensus 'Moderate Buy' rating overall. Out of 45 analysts covering the stock, 27 recommend a 'Strong Buy,' three give a 'Moderate Buy,' and 15 analysts stay cautious with a 'Hold' rating. While NFLX stock is trading at a premium to its average analyst price target of $1,239.17, the Street-high target of $1,600 signals that the stock can still rise as much as 27% from current levels. On the date of publication, Sristi Suman Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
14-05-2025
- Business
- Forbes
Think Twice About Netflix Stock
FORT MONMOUTH, NEW JERSEY - MAY 13: Phil Murphy speaks onstage during the Fort Monmouth ... More Groundbreaking Ceremony on May 13, 2025 in Fort Monmouth, New Jersey. (Photo byfor Netflix) Netflix (NASDAQ:NFLX) shares have been exceptionally successful this year, climbing approximately 25% since the beginning of January and trading close to $1,100 each. This increase can be attributed to several factors. Netflix's financial results have been robust, driven by subscriber growth from lower-priced ad-supported plans, enforcement against password sharing, and rising advertising revenues. In Q1 2025, Netflix's revenues surpassed projections, growing 13% to reach $10.54 billion, while earnings increased by 25% to $6.61 per share. The company has also successfully raised prices without encountering significant pushback from clients. In late January, the cost of its standard plan rose to around $18 monthly, while the premium plan increased to about $25 per month. Thus, does Netflix stock still offer good value? We believe that the stock appears appealing yet volatile, making it a challenging choice to purchase at its current price of approximately $1110. We think there are several reasons for concern regarding NFLX stock, which renders it attractive yet highly susceptible to negative events, given that its current valuation is very high. We reach our conclusion by assessing the current valuation of NFLX stock in relation to its operational performance over the past few years, along with its present and historical financial status. Our evaluation of Netflix based on key metrics of Growth, Profitability, Financial Stability, and Downturn Resilience indicates that the company demonstrates a very strong operational performance and financial standing, as explained below. Nonetheless, if you seek growth with less volatility than individual stocks, the Trefis High Quality portfolio provides an alternative – having outpaced the S&P 500 and delivered returns surpassing 91% since its launch. Considering what you pay per dollar of sales or profit, NFLX stock appears very pricey when contrasted with the overall market. • Netflix has a price-to-sales (P/S) ratio of 12.3 compared to 2.8 for the S&P 500 • Furthermore, the company's price-to-free cash flow (P/FCF) ratio is 65.3, in contrast to 17.6 for the S&P 500 • Additionally, it maintains a price-to-earnings (P/E) ratio of 55.2 compared to the benchmark's 24.5 Netflix's Revenues have significantly increased over the past few years. • Netflix has experienced its top line increase at an average rate of 9.6% over the last 3 years (versus a 6.2% increase for S&P 500) • Its revenues have grown 15.6% from $35 billion to $40 billion in the last 12 months (compared to a growth of 5.3% for S&P 500) • In addition, its quarterly revenues grew 16.0% to $11 billion in the most recent quarter from $9.4 billion a year earlier (versus a 4.9% improvement for S&P 500) Netflix's profit margins are greater than most companies in the Trefis coverage universe. • Netflix's Operating Income over the last four quarters was $10 billion, representing a high Operating Margin of 26.7% (compared to 13.1% for S&P 500) • Netflix's Operating Cash Flow (OCF) during this timeframe was $7.4 billion, signifying a moderate OCF Margin of 18.9% (compared to 15.7% for S&P 500) • Over the last four-quarter interval, Netflix's Net Income was $8.7 billion – indicating a high Net Income Margin of 22.3% (compared to 11.3% for S&P 500) Netflix's balance sheet appears very robust. • Netflix's Debt was $16 billion at the conclusion of the most recent quarter, while its market capitalization stands at $474 billion (as of 5/12/2025). This suggests a very strong Debt-to-Equity Ratio of 3.2% (compared to 21.5% for S&P 500). [Note: A lower Debt-to-Equity Ratio is preferred] • Cash (inclusive of cash equivalents) constitutes $8.4 billion of the $52 billion in Total Assets for Netflix. This results in a strong Cash-to-Assets Ratio of 17.9% (compared to 15.0% for S&P 500) NFLX stock has experienced a slightly better impact than the benchmark S&P 500 index during several recent downturns. Concerned about how a market crash might affect NFLX stock? Our dashboard How Low Can Netflix Stock Go In A Market Crash? features a comprehensive analysis of how the stock has performed during and after past market crashes. • NFLX stock dropped 75.9% from a peak of $691.69 on 17 November 2021 to $166.37 on 11 May 2022, compared to a peak-to-trough decline of 25.4% for the S&P 500 • The stock completely recovered to its pre-Crisis peak by 20 August 2024 • Since then, the stock has risen to a high of $1,156 on 4 May 2025 and currently trades at approximately $1110 • NFLX stock declined 22.9% from a peak of $387.78 on 18 February 2020 to $298.84 on 16 March 2020, versus a peak-to-trough decline of 33.9% for the S&P 500 • The stock completely recovered to its pre-Crisis peak by 13 April 2020 • NFLX stock decreased 55.9% from a peak of $5.81 on 17 April 2008 to $2.56 on 27 October 2008, compared to a peak-to-trough decline of 56.8% for the S&P 500 • The stock fully recovered to its pre-Crisis peak by 17 March 2009 In conclusion, Netflix's performance based on the metrics highlighted above is as follows: • Growth: Extremely Strong • Profitability: Strong • Financial Stability: Extremely Strong • Downturn Resilience: Neutral • Overall: Very Strong Therefore, despite its extremely high valuation, the stock stands out as appealing yet volatile, reaffirming our conclusion that NFLX is a difficult stock to purchase. Concerned about the unpredictable nature of NFLX stock? The Trefis High Quality (HQ) Portfolio, consisting of 30 stocks, has demonstrated a history of comfortably surpassing the S&P 500 over the past 4-year interval. Why is that? As a collective, HQ Portfolio stocks have yielded superior returns with lower risk relative to the benchmark index, resulting in a smoother investment experience as evidenced by HQ Portfolio performance metrics.
