BOOM! Netflix Drops a Q3 Bombshell—How They’re Making BILLIONS with Fewer Subscribers (Shares Soar)

Well Netflix just dropped a third quarter earnings bomb, and let’s just say, it had Wall Street foaming at the mouth like a malnourished tick in a nudist colony. Shares shot up 11% on Friday morning after the streaming giant not only beat expectations but went full-on beast mode with its revenue and earnings report.

(Source: Giphy) 

Which honestly doesn’t surprise me one bit, especially considering Netflix has been soaring 63% YTD. But with a company that’s somewhat been in the doghouse for cracking down on people like me who still uses my parents Netflix password (sorry, not sorry), this earnings was bigly big. 

(Source: Euro News) 

In short, Netflix posted a ridiculous $5.40 earnings per share for Q3, absolutely annihilating the $5.12 that analysts had penciled in. And if that wasn’t enough to get even more Netflix employees chomping at the bit get in on some scandalous “insider trading”, the company also pulled in $9.83 billion in revenue, topping the $9.77 billion expectation. Yeah, it really be like that sometimes. 

Additionally, Netflix’s ad-supported tier—yes, the one everyone was side-eyeing when it launched—saw a 35% jump in membership quarter-over-quarter. Of course, Netflix isn’t expecting ads to be its primary sugar daddy until 2026, but for now, that ad-tier alone accounted for more than half of new sign-ups in Q3. Meaning, they are legit thriving in this segment. 

(Source: Bloomberg) 

Looking ahead, Netflix is basically telling everyone to hold onto their jockstraps as they’re forecasting a 14.7% revenue pop for Q4, landing them somewhere around a cool $10.13 billion. And if you’re curious about 2025, they’ve got their sights set on a $43 to $44 billion revenue range. That’s an 11%-13% growth spurt over their expected 2024 numbers.

Citi analysts were practically losing their minds with the earnings drop, saying Netflix’s Q4 outlook “exceeded the Street,” while its 2025 forecast was “relatively in line.” Translation: Netflix is still crushing it, it looks like that’s not going to change anytime soon.

(Source: Giphy) 

So, how’s Netflix pulling this off in a media landscape that’s, let’s be honest, a tire fire? One word: content (obvi). While the broader entertainment industry is getting choked out by strikes, layoffs, and budgets tighter than your skinny jeans, Netflix is out here throwing money at content like there’s no friggin tomorrow. Richard Broughton from Ampere Analysis summed it up best: Netflix will be responsible for nearly 1 in 10 global scripted TV series next year. That’s some serious scale.

And while subscriber growth might be slowing down (only 5.07 million added in Q3 vs. 8.76 million last year), Netflix is focusing on what really matters: profitability. The company’s net income surged by 41% to $2.36 billion, even though subscriber growth has returned to more “normal” levels. TL;DR—Netflix is making more money with fewer new subs, and that’s the kind of math Wall Street loves.

(Source: Forbes) 

What’s more, is that Netflix is officially back at it with the price hikes. After jacking up prices in Japan, parts of Europe, Africa, and the Middle East, Netflix is now coming for Italy and Spain. And if you think the U.S. is safe, think again. They haven’t raised prices stateside in three years, and you know that’s not going to last forever. 

(Source: Yahoo Finance) 

So yeah, Netflix is operating on a whole other level right now. Slower subscriber growth? Ehh, who cares when you’re raking in billions and juicing profitability, amirite? Between the price hikes, ad-tier growth, and a content pipeline that makes every other entertainment company jealous, Netflix is setting itself up for long-term domination.

Meaning for everyone who still ain’t convinced that Netflix is the Jay Z of streaming… lol, think again. Netflix is out here cashin’ checks and snappin’ necks left, right, and twice on Sunday… and predictably, Wall Street is loving every minute of it. 

(Source: Giphy) 

In the meantime, you know what to do. Keep an eye on Netflix and as always, stay safe and stay frosty, friends! Until next time… 

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Stocks.News holds positions in Netflix as mentioned in the article.