Netflix has once again shown that it is thriving in the streaming business after its latest earnings show amazing growth, adding 19 million subscribers in the last quarter and surpassing 302 million global users. The company's strategic expansion into live sports content, including the Jake Paul-Mike Tyson boxing match and NFL games, has pushed the demand for subscriptions and built the brand for such events in the future. The November boxing event became Netflix's most-streamed sporting event ever, with record-breaking sign-ups since 2019.

Considering the subscriber growth, the company's revenue was modest, growing 16% with sales only slightly above estimates. This limited revenue growth is attributed to subscriber gains from lower-average-revenue countries and increased ad-supported tier sign-ups. To address this, Netflix has implemented price hikes in select markets, including the US, Canada, Argentina, and Portugal, with tier prices increasing between $1 and $3. This could be a lucrative yet risky move, as its core value is convenience over piracy, which has seen it develop into a minuscule in comparison yet a profitable business.

The market has responded positively to Netflix's performance, with shares soaring 13% to an all-time high of $988, likely setting the stage for a stock split. Analysts remain optimistic, with 24 raising their price targets and setting a median target of $1,025. Looking ahead, Netflix plans to leverage its strong content lineup, including new seasons of "Stranger Things" and "Wednesday," and has already secured broadcast rights for the 2027 and 2031 FIFA Women's World Cups, positioning itself for continued growth in the competitive streaming landscape.

Source: Netflix, Reuters, The Economic Times, Yahoo
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