Netflix results. Josh Gilbert, Market Analyst at eToro

Josh Gilbert analyzes the results presented yesterday by Netflix. “The streaming giant has overcome the challenges, has gone from less to more and continues to offer solid profitability, something it has been wanting for a long time,” he explains. Although he points out that “competition will continue to be high” during this year, “cost control will be vital to continue being the only profitable streaming platform,” he concludes.

It was a great end to the year for Netflix, with a fourth quarter that brought in 13.12 million new subscribers, its biggest gain since the pandemic.

After a couple of rollercoaster years, Netflix came back strong in 2023, showing some of the biggest growth in its history, thanks to a strong content catalog, crackdowns on password sharing, and its new and more cheap modality with advertising.

Netflix offered moderate forecasts for subscriber growth in 2024, but left plenty to cheer about for investors. Revenue growth is likely to be double-digit for the year thanks to price hikes and further growth in its advertising model. Profitability will also be the highest in history, with an estimated 30% growth in 2024 thanks to expanding gross margins.

The streaming giant has overcome the challenges, has gone from less to more and continues to offer solid profitability, something it has been wanting for a long time. Competition will remain high over the next year, a key challenge, but cost control will be vital to remain the only profitable streaming platform. There is plenty of room for growth on the horizon, which is great news for investors.

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