Netflix boasts a market capitalization of $279.077 billion, and in recent times Netflix, Inc. (NASDAQ: NFLX) experienced a one-month return of 11.79%, with its shares gaining 61.72% in value over the past 52 weeks. As of May 30, 2024, Netflix, Inc. (NASDAQ: NFLX) closed at $647.66 per share.
An investment advisory firm RiverPark Advisors, recently issued its investor letter for the first quarter of 2024 “RiverPark Large Growth Fund”. In its first-quarter 2024 investor letter, RiverPark Large Growth Fund provided insights on Netflix, Inc. (NASDAQ). The report Mentions that the Netflix Inc (NASDAQ) emerged as a top contributor, buoyed by robust fourth-quarter earnings and optimistic 2024 guidance. The company exceeded expectations with a remarkable addition of 13.1 million subscribers, surpassing estimates of 8.9 million.
READ MORE: Planetary Parade: Six Planets To Align Together In A Spectacular Celestial Event, Find Out Where You Can Get A Glimpse
The acceleration in subscriber growth was attributed to measures such as cracking down on password sharing and introducing the lower-cost, ad-supported subscription offering, known as the Ad Tier. Although average revenue per user (ARPU) fell below projections, anticipated price hikes in key markets like the US, UK, and France indicate a potential increase in ARPU.
NFLX raised its 2024 operating margin guidance to 24%, surpassing the previous estimate of 22-23%, and anticipated 2024 free cash flow of $6 billion. With subscriber growth on the upswing, coupled with premium membership price adjustments and stabilized content investments, Netflix appears poised for low double-digit annual revenue growth over the coming years, while simultaneously improving its operating margin to over 25%. The company’s ability to stabilize content spending is expected to further enhance its scalability and bolster free cash flow.