Netflix, Inc. (NASDAQ-NFLX) is an American pay-per-view online movie provider. It is currently available in 190 countries around the world – in North and South America, Europe, Africa, Australia and Asia. Since January 2016, it is also available in the Czech Republic and Slovakia. The company was founded in 1997 and is headquartered in Los Gatos, California. The company began providing services to subscribers in 1999. Initially, Netflix provided movies only on DVDs, which it mailed within the US. Ten years later, the company began providing streaming content over the Internet.
Netflix Inc.’s stock price jumped Tuesday after the company said it saw a 13.1 million increase in subscribers during the fourth quarter. That subscriber growth beat Wall Street estimates. Compared to the third quarter, the company saw an increase of 8 million to 9 million. Netflix now has 260.8 million subscribers, a new record. The company posted a 12.48% increase in total sales to $8.83 billion for the fourth quarter of 2023. The company posted net income of $937.8 million. As Netflix focuses on improving earnings, the company raised its full-year operating margin forecast for 2024 to 24%, from a range of 22% to 23%. It cited the weakening US dollar and better-than-expected fourth-quarter performance as the reason.
Although Netflix has been experiencing single-digit year-over-year revenue growth for more than a year, it has confirmed, according to published earnings results, that limiting account sharing between users and requiring paid registration has ensured steady revenue growth for the company. Already for the second and third quarters, the company has seen an increased trend in paid registrations due to this new measure. Another major contributor to Netflix’s growth is the nascent advertising campaign, which will become a driving business for Netflix in 2024. Company executives recognize that a large number of advertisers is key to attracting more future users. According to sources, the company is currently discovering its strength in the advertising industry, which will benefit it in the coming quarters. These facts have attracted the attention of multinational investment corporations and private investors to buy shares of Netflix, Inc. (NASDAQ-NFLX) in particular, for which the average target price for the short- to medium-term investment horizon has been set at $521.65 per share.
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