Netflix Stock Jumps 5% as Strong Q3 Earnings, $9.83B Revenue Beat

Netflix (NFLX) stock surged by up to 5% in after-hours trading on the back of a stunning performance in the third quarter. The streaming behemoth delivered earnings at a level higher than what the analysts expected and recorded revenue that was above the consensus figure despite also giving a bullish forecast for the current quarter.

The companyâ€s expansion was attributed to different acts, such as the crackdown on password sharing, the advertising phase that included the successful term for the ad-supported tier as well as the increase in the subscription plan fees.

Netflix foresees quarter four earnings of $10.13 billion, which is the top end of the range the Wall Street experts have predicted, taking the full year 2025 into account. To sum up, the whole 2025 company predicts revenue to be from $43 billion to $44 billion, which is 11%-13% probably a forecast from the $38.9 billion expected for 2024. Netflix also forecasts that 2025 operating margins will increase to 27% after reporting a record margin of nearly 30% in the third quarter.

Netflix Surpasses Q4 Estimates, Ad-Tier Gains Traction

As reported by Netflix, for the fourth quarter, the company earned an EPS of $5.40, topping the consensus estimates of $5.16 and demolishing the $3.73 EPS from the same quarter a year ago. For the coming fourth quarter, the company approximates its EPS will reach $4.23, a result that is once again higher than the one of the analysts who gave a figure of $3.90.

Investors reacted positively to Netflixâ€s new initiatives. These include sports and live events. They also approved of Netflixâ€s progress on an ad-supported tier. In the third quarter, this ad-supported option was popular. It became the top choice for new sign-ups where available.

Besides, Netflix also highlighted a 150% increase in the upfront ad sales commitments compared to last year, which is indicative of its impending advertising business boost, albeit CEO Greg Peters cautioned that it will require some time to take full advantage of this.

Netflix Stock Chart Analysis

NFLX/USD 15 Minute Chart

When analysing Netflixâ€s (NFLX) stocks, it is glaring that the recent chart denotes a crashing trend. The stock is currently selling at $687.79, which is only about $2 lower than its intraday low of $685.59. This is a huge gain from the low of $735.98 earlier in the week. Investors can clearly observe the downtrend, which could indicate the stock is forming lower highs and lower lows. Thus, there is pressure on selling.

Netflix reported positive earnings for the third quarter after hours. However, the chart shows broader market uncertainty. It also suggests possible profit-taking. A sharp fall on October 17 is notable. This drop might indicate increasing selling volume. The sell-off could be due to investors†macroeconomic concerns. Alternatively, it may reflect issues affecting the entire technology sector.

From a technical viewpoint, we seem to be moving near a crucial level of support of approximately $685.

Pay attention to Netflix stock and determine if it is in the process of reaching the essential support areas! Regardless of whether you are looking for a short-term recovery in stock price or a long-term opportunity suitable for investment, it might be the best time to act. Be aware, and be ready to act.

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