UBS Global Wealth Management portfolio manager Angie Newman addressed the market reactions in light of ongoing trade tensions and shared guidance for clients and investors. On Thursday, Netflix surpassed Wall Street’s expectations with its quarterly results and projected a positive revenue outlook, demonstrating confidence amid the uncertainties caused by President Donald Trump’s fluctuating tariff strategies.
In after-hours trading, Netflix shares remained relatively stable at $970.10. The streaming service announced that its co-founder, Reed Hastings, transitioned from his role as executive chairman to the board’s non-executive chair. This move was described as part of the company’s ongoing leadership structure and succession planning.
During the first quarter, Netflix reported revenues of $10.54 billion, slightly ahead of analysts’ forecasts of $10.52 billion, based on data from LSEG. Earnings per share, diluted, were $6.61, exceeding the consensus estimates of $5.71. The company released new content during this period, including the limited series “Adolescence,” the drama thriller “Zero Day,” and the unscripted series “Temptation Island.”
Financially, Netflix’s stock (NFLX) showed positive movement, closing at $973.03, which marked an increase of $11.40 or 1.19%. Looking ahead to April through June, Netflix projected revenue growth to reach $11.04 billion, surpassing analyst expectations of $10.90 billion. This anticipated rise is attributed primarily to membership growth and pricing adjustments.
Analysts have suggested that Trump’s economic policies could potentially trigger a recession, causing consumers to reconsider their spending on streaming services. Despite this, Netflix is unlikely to experience significant subscriber attrition due to its strong market position and popular content, noted Bank of America media analyst Jessica Reif Ehrlich. However, it was indicated that some price-sensitive consumers might opt for cheaper subscriptions.
Since launching an ad-supported tier in late 2022, Netflix has seen a strong consumer response, accounting for 55% of new sign-ups in regions where it is available. The platform maintains dominance in the streaming video market with over 300 million global subscribers. In January, the company reported a record addition of 18.9 million subscribers in the fourth quarter of 2024.
In the current quarter, Netflix withheld specific subscriber figures to focus on performance metrics like revenue and profit, leading analysts to interpret this shift as an indication of potentially slower subscriber growth in the future.
