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Netflix NASDAQ: NFLX Gave a convincing performance in his income report for 2025 in the first quarter of 1725 on April 17, surpassing the expectations of analysts for key financial indicators and offering confident prospects for the upcoming quarter.

Strong results provided fresh evidence of the narrative gaining traction, which Netflix is ​​a unique growth story in the technological sector, which is currently faced with economic uncertainty and alarming trade tariffs.

Since competitors can try their best to maintain an impulse, the steady growth of Netflix subscribers and an increase in profitability continue to allocate it.

Income show record fields and strong growth

The financial results of Netflix for the first quarter showed strong growth and increased profitability. Revenue increased by 12.5% ​​per year (16% on the first currency basis) up to 10.54 billion dollars, which slightly exceeds the consensus assessment of the Netflix analytical community in the amount of $ 10.51 billion.

Operating profit increased by 27%, reaching $ 3.35 billion. The United States, which led to a record operating margin by 31.7%, compared with 28.1%in the first quarter of 2024. This demonstrates successful cost management and scaling.

Netflix expects an impulse to continue in the second quarter of 2025, Forecasting income $ 11.04 billion. (By 15% compared to last year, growth, or 17% on a neutral currency basis) and the potential record operational margin is 33.3%, while diluted income for shares (EPS) will be expected to be 7.03 US dollars. The company also confirmed its management in 2025 in 2025, aimed at revenue from 43.5 to 44.5 billion dollars. USA and 29% Operational profit.

During the income call, the management noted that the company monitors above the average point of its range of income manuals throughout the year based on later currency rates. At the same time, it is expected that a free cash flow over the year will be approximately $ 8 billion.

“Defensive advantage”: evasion of tariff loss

After strong results, Q1 analysts are increasingly distinguishing the “protective” quality of Netflix in the technological sector. JPMorgan NYSE: JPMfor example, confirmed his idea, assuming that Netflix could be “The purest story in the Internet technology” From the few fundamental aspects of their business, which, in the visible, protect it from trade tariffs and broader economic problems affecting other industries.

Unlike hardware companies with confusing global supply chains, which are vulnerable to tax imports, Netflix works mainly as a global digital service. His income, received from subscriptions and advertising, is not directly subjected to tariffs for physical goods. Moreover, with most income comes from the US limits, and the lack of operations in China, Netflix benefits from significant geographical diversification, reducing risks associated with any separate economy or trade conflict.

The subscription model, especially with the introduction of a lower level supported by the AD, is considered as relatively stable compared to enterprises that strongly depend on large, non -essential procurement of consumers (such as electronics) or platforms, which are exclusively assumed to potentially fluctuations in the advertising budgets.

For call 1 quarterNetflix Management said that they did not observe any significant adverse consequences for retaining, canceling or choosing plans from a recent increase in prices or wider economic uncertainty. Co-Director Grega Peters also emphasized the historical stability of the costs of entertainment during economic downturn. This perceived stability contrasts sharply with the problems that many other technological companies face.

Growth engines shoot at all cylinders

Strong financial indicators Netflix Strategically conducted after a few key initiatives. Their entry into advertising, in particular, the level supported by advertising, is a significant growth engine attracting new subscribers (more than 55% of new registrations in advertising markets during the 4th quarter of 2024) and a rapid increase in membership (almost 30% of the quarter in 4 quarters 24).

Netflix seeks to further monetize this with the launch of Netflix ADS Suite, which began in the United States on April 1 and will expand to other advertising markets in 2025. This service offers expanded targeting and measurement for advertisers and will increase this highly effective flow of income.

The “Paid Exchange” initiative, dedicated to the exchange of password, successfully transformed non -payment spectators into subscribers or new owners of accounts, significantly increasing income and contributing to the records of global paid net addictions in 2024.

These monetization strategies are based on extensive and diverse content of Netflix Bibliotek. Significant investments of the company in original production in genres and languages ​​for the global audience remain central.

In addition to streaming, Netflix develops its game strategy, concentrating on key genres, using its intellectual property and studies cloud games. Experimental enterprises, such as Netflix bites and the planned places of Netflix House, indicate strengthening the interaction with direct needs and creating new income capabilities.

Why experts remain positive on Netflix

After the Netflix report on profit in the first quarter, the financial community expressed strong confidence in the company, and the mood of analysts became even more optimistic. Data collected around April 21 from 36 analysts covering the action showed Consensus -rating of moderate purchasefrom 28 of them, supporting the purchase Or strong purchase ratings.

Strong institutional support also supports the bull position, with Large institutional investors Holding approximately 81% of Netflix shares. Despite the fact that insider sale has occurred over the past year, for managers to typically diversify assets after a significant assessment of shares.

Despite its premium assessment, it is reflected in the trick The ratio of the price of obtaining (p/e) about 50Analysts and investors seem to be ready to pay multiple. This is largely due to the strong basic basic principles of the company: demonstrated income, predicted future growth, consistent expansion of margin, solid generation of free cash flow, dominant market position and noticeable stability in the current economic climate.

Netflix remains an outstanding technological sector

The results of Netflix Q1 2025 strengthened their leadership position, demonstrating strong financial indicators and effective execution in key areas, such as advertising, paid exchange and maintenance.

It is noteworthy that the company demonstrated resistance to macroeconomic problems that affect the technical sector. This success received in the vast majority of positive responses with Wall Schell, with increased prices and reinforced purchase ratingsField

The market confidence in Netflix’s ability to navigate uncertainty and maintain profitable growth makes it a convincing investment opportunity in the current market.

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