This week, Netflix announced $11.08 billion in second-quarter earnings, 16% higher than the same period in 2024. The streamer also raised its revenue outlook for the full year from its previous forecasts, based on “healthy” member growth and ad sales.
The only slightly dark spot among the details was that profit margins in the second half of the year are expected to be slightly lower than the amazing 34.1% level achieved in the second quarter, due to an increase in content acquisition and development costs. NFLX shares dropped 5% for the week, on concerns about the decrease in operating margins.
Despite this week’s drop in its share price, most analysts are bullish on the company’s long-term outlook. Industry analysts are virtually unanimous in their expectations that Netflix shares will end the year significantly higher, with a slate of highly anticipated upcoming movies and series that include HAPPY GILMORE 2, STRANGER THINGS, and WEDNESDAY. Because Netflix no longer reports the number of its subscribers, analysts are left to use revenue and earnings to evaluate its performance.
