Netflix Inc. Inc. scheduled to report earnings after Thursday’s close. The stock hit a record high of $1,064.50/share in February 2025 and, as of this writing, it is currently trading near $976. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:
Earnings Preview
The company is expected to report a gain of $5.74/share on $10.54 billion in revenue. Meanwhile, the so-called Whisper number is a gain of $5.86/share. The Whisper number is the Street’s unofficial view on earnings.
A Closer Look At The Fundamentals
The company has managed to grow its earnings over the last few years. In 2018, the company earned $2.68, and in 2024 the company earned $19.83, which is a very large increase! Additionally, the company is expected to earn $24.68 in 2025 and in 2025, earnings are expected to grow to $30.15. The company sports a price to earnings ratio of 49, which is 2.1x the S&P 500.
A Closer Look At The Technicals
Technically, the stock is acting very strong considering how weak the broader market has been in recent weeks. The stock is tracing out a bullish double bottom (W) pattern and is only 8% below its record high. The bulls want to see the stock gap up and rally after reporting earnings and the bears want to see it gap down and fall.
True Market Leader = Remarkable Stock
The stock has has established itself as a true market leader, demonstrating exceptional performance and influence across the tech, entertainment, and broader market. Netflix is one of the strongest stocks in the market and has earned the right to be called a True Market Leader.
Company Profile
Netflix, Inc. provides entertainment services. It offers TV series, documentaries, feature films, and games across various genres and languages. The company also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices. It has operations in approximately 190 countries. The company was incorporated in 1997 and is headquartered in Los Gatos, California.
Company Background — The Godfather Of Streaming
Netflix, Inc. is a trailblazing American media company that has revolutionized the way people watch movies and television. The company was founded in 1997 in Scotts Valley, California, by Reed Hastings and Marc Randolph. The inspiration for Netflix reportedly came after Hastings was charged a hefty late fee for a rented movie, which led the co-founders to imagine a more convenient, customer-friendly approach to home entertainment. At the time, the video rental industry was dominated by brick-and-mortar stores like Blockbuster, which relied on late fees and limited selection. Netflix’s founders saw an opportunity to leverage the internet and the emerging DVD format to create a better experience.
Netflix launched its website in 1998, offering an online DVD rental service. Customers could browse a catalog of titles, order DVDs online, and have them delivered to their homes by mail. The company’s innovative approach eliminated late fees and allowed users to keep DVDs as long as they wanted, returning them in prepaid envelopes when finished. This model quickly gained popularity, especially after Netflix introduced a subscription service that allowed for unlimited rentals for a flat monthly fee. The convenience, selection, and customer-centric policies helped Netflix stand out in a crowded market and build a loyal subscriber base.
As the company grew, Netflix invested heavily in technology, particularly in developing sophisticated recommendation algorithms that suggested titles based on user preferences. This personalized touch helped keep subscribers engaged and increased customer satisfaction. By the mid-2000s, Netflix had established itself as a major player in the home entertainment market, even as competitors like Blockbuster struggled to adapt to the changing landscape.
The most significant turning point in Netflix’s history came in 2007, when it introduced streaming video. This new service allowed subscribers to instantly watch movies and television shows on their computers, bypassing the need for physical DVDs altogether. Streaming marked the beginning of a new era, as Netflix shifted its focus from mail-order rentals to on-demand digital content. The company rapidly expanded its streaming library and began making deals with studios to license popular movies and TV shows.
Recognizing the importance of exclusive content, Netflix made another bold move by producing its own original programming. The release of “House of Cards” in 2013 signaled the company’s arrival as a major force in Hollywood. Since then, Netflix has invested billions of dollars in original series, films, and documentaries, earning critical acclaim and numerous awards. Its global reach and commitment to diverse storytelling have made it a household name around the world.
Today, Netflix is synonymous with streaming entertainment. It serves millions of subscribers in nearly every country and continues to shape the future of media with its innovative technology, vast content library, and ambitious original productions. The company’s journey from a small DVD-by-mail service to a global entertainment powerhouse is a testament to its vision, adaptability, and relentless pursuit of customer satisfaction.
Pay Attention To How The Stock Reacts To The News
From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.
Disclosure: The stock has been featured on FindLeadingStocks.com