Netflix Earnings Beat Estimates but Shares Dip on Competitive Concerns
Netflix delivered stronger-than-expected fourth-quarter earnings, reporting $0.56 per share against a projected $0.55. Revenue climbed 18% year-over-year to $12.05 billion, fueled by subscriber growth, price increases, and a surge in ad-tier adoption. The streaming giant now boasts 325 million global users, with ad revenue alone surpassing $1.5 billion—a 2.5x jump from 2024.
Despite these metrics, shares fell 4% in after-hours trading as investors weighed rising content costs and intensifying streaming competition. The market's reaction underscores the tension between Netflix's financial performance and the capital-intensive demands of maintaining dominance in the crowded streaming landscape.