Time: 2024-07-26
Netflix ( NASDAQ : NFLX ) has been experiencing a steady climb in its stock price , buoyed by its deepening involvement in live sports streaming and the introduction of new ad - supported tiers . The company 's recent financial results for Q2 2024 showed a robust 16.5 % year - over - year growth in subscribers , with a total of 277.6 million subscribers , extending its lead over competitors like Disney+ . The introduction of a new ad - supported tier , which accounted for 45 % of new sign - ups , has been a key driver of growth for Netflix . Additionally , the crackdown on password sharing and the monetization of ad inventory have further bolstered subscriber numbers and revenue growth for the streaming giant.
In a bid to expand its market dominance , Netflix has ventured into live programming , with successful events like The Roast of Tom Brady and the upcoming Jake Paul vs. Mike Tyson boxing match . The company 's exclusive deal with World Wrestling Entertainment ( WWE ) starting in 2025 will include weekly live programming and special events . With streaming accounting for only 40.3 % of total TV time in the U.S. , Netflix sees a significant opportunity to grow its share in the market , particularly with live sports content like NFL games . The potential 00 billion annual opportunity across streaming , branded advertising , pay TV , and games presents a substantial growth prospect for Netflix in the long term.
Despite trading at a premium P / E ratio compared to the Nasdaq-100 index , Netflix 's stock presents a compelling investment opportunity based on its long - term potential . Wall Street estimates forecast an increase in earnings per share to 2.37 by 2025 , resulting in a forward P / E ratio of 28.3 . This suggests that Netflix 's stock has room for growth and could maintain a premium valuation due to its dominant position in the streaming industry . Investors who allocate funds to Netflix stock now could see significant returns over the next decade as the company continues to expand its market share and revenue streams.
Business
