Netflix rises despite the plethora of competitors in streaming.  Apple TV+,  Discovery+, Disney+,  AT&T’s Warner Media’s HBO Max, Viacom CBS’ Paramount+, and NBCUniversal’s Peacock are all streaming services available to consumers, but Netflix recorded its best quarter yet. 

The streaming video giant increased its net subscribers and profitability; its stock rose nearly 17% on Wednesday.  The company has more than 200 million paid membership including 8.5 million paid net additions in Q4.

Netflix rises

Netflix Fundamental Analysis

On January 19, the entertainment giant reported adjusted earnings of $1.19 per share, below the estimated $1.36.   Netflix’s fourth-quarter revenue was $6.64 billion versus $6.626 billion expected, according to Refinitiv.

For the 2020 fiscal year, Netflix recorded $25 billion in annual revenue and grew operating profit 76% to $4.6 billion.

The company said that it would be free cash flow positive very soon and consider returning cash to shareholders through buybacks.  The firm returned cash to shareholders more than a decade ago.  Netflix currently has $8.2 billion cash on hand.  

The entry of legacy competitors such as Disney+, Warner Media’s HBO Max, and others in the streaming does not seem to prevent Netflix from reaching its paid membership milestones.  From 2018 to now, the firm’s paid memberships have risen from 111 million to 204 million.