Q3 2024 Earnings Summary
Reported on Jan 4, 2025 (After Market Close)
Pre-Earnings Price$687.65Last close (Oct 17, 2024)
Post-Earnings Price$737.64Open (Oct 18, 2024)
Price Change
$49.99(+7.27%)
- Heavy Investment in New Initiatives with Delayed Revenue Impact: Netflix is investing significantly in new ventures such as games, live events, and advertising, but these initiatives take time to become material contributors to revenue. For example, ads revenue is "roughly doubling revenue each year, but it's off a small base" and will only become significant "over the next several years" , .
- Slowing Engagement Growth: Total hours watched on Netflix were up only roughly 1% in the first half of the year compared to the same period last year, indicating a potential slowdown in user engagement growth .
- Competitive Pressures and Market Saturation: In Netflix's biggest countries, their share of viewership is still less than 10% of TV time, and the company faces competition from traditional TV bundles and platforms like YouTube , . Additionally, competitors are using bundles to find growth, which could challenge Netflix's market position .