Netflix Stock Jumps Above $1,000 After Surprising Earnings Report
Netflix shares gained 1% during trading today and have surged 4% in after hours on positive earnings from adds revenue.
Skerdian Meta•Thursday, April 17, 2025•2 min read
Quick overview
- Netflix shares surged over 4.5% in after-hours trading following a strong Q1 earnings report that exceeded analyst expectations.
- The broader U.S. stock market experienced mixed results, with the Dow Jones dropping 1.3% due to a significant decline in UnitedHealth's stock.
- Despite macroeconomic challenges, Netflix's solid performance and optimistic guidance for Q2 suggest continued growth in the streaming sector.
- Investors are cautious as they await further earnings reports and navigate a long weekend with U.S. exchanges closed until Monday.
Netflix shares gained 1% during trading today and have surged 4% in after hours on positive earnings from adds revenue.
Mixed Day on Wall Street as Tech Shines, Healthcare Drags
U.S. stock markets showed early strength on Thursday, but optimism quickly faded. The Nasdaq Composite slipped 0.3%, while the Dow Jones Industrial Average plunged 1.3%, weighed down heavily by UnitedHealth’s 25% collapse after the healthcare giant slashed its earnings forecast. The sharp drop in UnitedHealth dragged on the broader blue-chip index, overshadowing gains in select tech names.
Adding to the uncertainty, markets now head into a long weekend, with U.S. exchanges closed until Monday. Investors remain cautious amid earnings surprises, sector-specific pressures, and macro headwinds.
Netflix Chart Daily – Massive Gains Since 2022
The upbeat report sparked a 5% surge in NFLX shares in after-hours trading. Futures spiked to $1,017, well above the $973 closing price, though volatility quickly returned and caused some choppiness after the initial spike. The trend has been bullish since summer 2022 when NFLX was trading below $170, and today’s jump has taken it above $1,000 again, and will likely print a new record high soon.
Netflix Delivers a Blowout Quarter — Shares Soar
Despite the broader market weakness, Netflix (NFLX) stole the spotlight after the closing bell with a stronger-than-expected Q1 earnings report. Analysts polled by LSEG had forecasted EPS of $5.71 and revenue of $10.51 billion, but the streaming giant surpassed both.
Netflix Q1 2025 Earnings Highlights
Revenue (Q1):
- Reported at $10.54 billion, slightly above expectations of $10.51 billion.
- Reflects continued momentum in subscriber growth and pricing strategy optimization.
Earnings Per Share (Q1):
- Came in at $6.61, significantly beating estimates of $5.71.
- Strong operating margins and lower content spend contributed to the earnings surprise.
Revenue Outlook:
- Reiterated full-year guidance between $43.5 billion and $44.5 billion.
- Indicates confidence in pipeline strength and continued monetization improvements.
Q2 EPS Guidance:
- Forecasts Q2 EPS at $7.03, suggesting sequential earnings growth.
- Implies stability in margin trends and growing leverage from global operations.
Netflix delivered a solid beat on both top and bottom lines in Q1, reinforcing its positioning as a dominant player in the streaming sector. Despite macroeconomic headwinds and rising competition, the company’s strong profitability and reaffirmed guidance provide reassurance to investors. With a higher-than-expected Q2 EPS projection, Netflix appears well on track to extend its earnings growth trajectory through 2025.
What’s Next for NFLX?
The sharp move in Netflix shares signals renewed confidence in the company’s earnings trajectory. However, with after-hours volatility still unfolding, investors will be closely watching Friday’s pre-market activity and Monday’s open for signs of sustained momentum.
As the market digests mixed earnings across sectors and braces for a quiet trading window, Netflix’s strong showing stands out as a rare bright spot amid an otherwise shaky session on Wall Street.
Closing Levels for Main US Stock indices
Dow Jones taking the biggest hit amid health sector weakness, while the S&P 500 clung to gains thanks to resilience in large-cap names. Tech stocks wobbled as the Nasdaq dipped slightly, reflecting ongoing concerns over chip sector volatility and global trade friction. Investors remain cautious ahead of more earnings releases and geopolitical developments.
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ABOUT THE AUTHOR
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Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst.
Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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