Netflix, Inc. (NFLX)

In the past six months, Netflix stock experienced several significant events. Netflix reported better-than-expected sales and profits for Q4 2024, adding 18.91 million global subscribers, leading to a stock jump. Netflix raised prices for its subscription plans in January 2025, contributing to better-than-expected Q1 2025 results. The password sharing crackdown drove subscriber growth, but concerns about its stabilization led to a stock decline in March. Netflix released a strong Q1 2025 report, exceeding expectations with double-digit revenue and earnings growth, driven by the success of ad-supported subscriptions. The ad-supported tier has been a significant growth driver, with plans to double advertising revenues in 2025. Netflix reported stronger-than-expected earnings for Q2 2025, raising its full-year revenue guidance, but the stock dipped slightly due to high expectations. Netflix stock has shown remarkable strength in the first half of 2025, outperforming the S&P 500, fueled by price hikes, the ad-supported tier, and strong earnings.

Demand for Netflix's products and services exhibits some seasonal patterns, though these appear to be waning. Content demand continues to evolve, with an increasing focus on films and English-language series. Historically, the second half of the year saw a decrease in viewing time, but this was less pronounced in 2024. Netflix's strategy of releasing entire seasons at once influences viewing patterns, and the company's continuous introduction of new content aims to maintain subscriber interest and growth throughout the year.

Netflix, Inc. is a global entertainment service operating via a subscription video-on-demand model. It is in the Communication Services, Media, Entertainment, and Technology Services sectors, offering TV series, films, documentaries, anime, feature films, mobile games, and a DVD-by-mail service in the U.S. The company markets its services through various partners.

Netflix has a significant global presence, operating in over 190 countries. Its business presence spans the Americas (UCAN, LATAM), Europe, the Middle East, Africa (EMEA), and Asia-Pacific (APAC). The company prioritizes expansion in the APAC and LATAM regions while maintaining a strong foothold in UCAN and EMEA.

Netflix has maintained a strong brand reputation, being ranked as the eighth-most trusted brand globally in 2021 and the No. 1 Most Loved Media Brand in the UK in 2023. The brand is perceived as a market leader for online streaming with a reputation for competence. However, its reputation was impacted by a stock plummet and subscriber loss in 2022, the introduction of an ad-supported tier, the password sharing crackdown, and data privacy concerns in 2024.

Netflix's ownership is primarily held by institutional shareholders, who own approximately 81.33% to 85.24% of the company's stock. Major institutional owners include Vanguard Group Inc., BlackRock, Inc., and Fmr Llc. Individual owners and insiders hold a smaller percentage, including Rick Kimball, Reed Hastings, and Ted Sarandos.