Netflix giant flow Nasdak: NFLX The results of the Q2 2025 were released on July 17, overlooking the expectations for both sales and profits for the seventh quarter in a row. Despite this, the markets were not jumping for joy. The shares decreased by about 1 % after Thursday hours, while giving about half of the gains made during the regular session, and approximately 5 % decreased in early trading on Friday.
So, why did these results not move the shares higher? In addition, what can investors take from the results related to long -term expectations for the estimated shares of the consumer?
Netflix’s Q2: Currencies Drive Outperformance, but not the stock price gains
Netflix today
As of 07/18/2025 04:00 pm
- 52 weeks
- $ 587.04
▼
1,341.15 dollars
- P/E ratio.
- 51.52
- The target price
- 1,291.41 dollars
Netflix revenues in the second quarter amounted to a little less than $ 11.1 billion, which represents a 16 % increase over the same last period. This was barely better than analysts expected. The $ 7.19 equivalent profit is equivalent to a growth rate of 47 %, and the eclipse analyst expectations of 45 % growth.
The company previously raised its revenue instructions for the entire year to the middle of a point of $ 45 billion, up from $ 44 billion.
Despite the rhythms, the arrows fell. The company attributed most of its revenues and performance superiority, in addition to increasing its instructions, to favorable Foreign drainage effects. This comes because the US dollar weakens against most other currencies.
However, since Netflix cannot control foreign currency movements, the markets will not be equivalent to stocks to overcome expectations accordingly.
However, the company provided other positive information. The growth of the members exceeded predictions, but it came near the end of the quarter. This means that the full effect did not appear in Netflix revenue numbers. Note that Netflix is no longer the subscriber numbers reports. The margins increased, and the overcoming remained in line with the expectations.
The hours that were seen during the first half of 2025 increased by 1 % of the first half of 2024. The company indicates that this number can improve with the progress of the year. Several prominent versions, including Stranger Things Finale, will be displayed in the second half of the year.
In general, a quarter of Netflix was “not much to see it here.” However, this does not mean that the important information that provides an insight into the long -term growth path was not available.
The renewal of the user interface and ads collection is good marks for Netflix aspirations
Netflix stock expectations today
1,291.41 dollars
6.79 % upModerate purchase
Based on 36 analyst classification
| The current price | 1,209.24 dollars |
|---|---|
| High expectations | $ 1,600.00 |
| Average expectations | 1,291.41 dollars |
| Low expectations | $ 680.00 |
Netflix shares details details
Netflix has many major lesions that you can withdraw to continue growing towards its ambitious goal of $ 1 trillion. The largest increased advertising revenue is likely. Netflix has taken multiple steps during the quarter that can benefit from this part of the work. First, the company provided the designed user interface (UI), with 50 % of its users sharing it.
The new articles of association provides real time, and changing what is believed to be users may want to see it based on various factors. This can help increase participation by making people more likely to find the content they want. Increasing the participation will increase the value of the advertisement on Netflix, which pays higher revenues.
In addition, the company has completely completed the launch of the AdS Netflix collection. This is the company’s internal advertising technology platform. Although this most likely did not bring much in the last quarter, it puts the company to accelerate the growth of advertising sales. The ADS group makes it easy for marketers to buy ads and improve advertising performance.
Thus, the basis for which the company’s advertising business can flourish. As the number of advertisers on the platform increases, the competition over the advertising space increases on Netflix. This can allow the company to pay more by advertisers over time.
Netflix also plans to continue the expansion of games and other “interactive experiences”, which it considers a large market that can be addressed. Following more live events outside the United States is another possible growth driver. These strategies can increase the long -term participation and membership.
Netflix forecast in the long run; The direction of the linear direction to the two buildings remains very important
As of the closure of July 17, Netflix is traded by a price rate of 47X. This is 42 % higher than the average P/E to 33X over the past three years. This comes as the stock gained 43 % in 2025 as of the closure of July 17. It is clear that the Netflix evaluation is high for history, but it has many ways to continue growth, as shown above.
In addition, the company is likely to benefit from the secular trend away from linear TV to broadcasting. The broadcast continues to take its share on the market away from other forms of watching TV, while still It represents only 46 % of the total viewers. Since this ratio is likely to increase, the broadcasting pie grows greater and benefits from Netflix growth. Because of this and the company’s ability to find new liquefied paths, the arrow’s look remains promising.
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