The market is feeling good about Netflix after management maintained guidance and said it believes it can reach $1 trillion in market cap by 2030.
It received several analyst upgrades in June.
NASA said it will stream rocket launches this summer, and streaming stocks rose after Apple released a film in theaters.
Netflix (NASDAQ: NFLX) stock gained 11% in June, according to data provided by S&P Global Market Intelligence. It received several analyst upgrades, it made some celebrated announcements, and it also seems to be rising on the coattails of Apple‘s success with its hit film F1: The Movie.
Netflix has been having another moment. Despite tons of new competition and a changing streaming landscape, it has remained in the top streaming spot, which is a real feat. It speaks to the company’s excellent management and foresight, and it bodes well for the company’s future potential as it successfully adapts, changes, and leads.
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In the 2025 first quarter, revenue increased 13% year over year, and operating income was up 27%. Operating margin improved from 28.1% to 33.3%, and earnings per share (EPS) increased from $5.28 to $7.03. The company has stopped reporting subscriber count, but it had more than 300 million paid subscribers at the end of 2024.
Image source: Getty Images.
Ad revenue from its relatively new ad-supported tier is still a small portion of total revenue, but management is expecting it to double this year. It’s also guiding for “healthy” subscriber growth and some price increases, and it maintained its full-year guidance despite continued pressure in the environment, boosting market confidence.
The strong results and improving streaming have led to several recent analyst upgrades, and the stock is rising as a result. It’s also benefiting from an overall improving market, with the S&P 500 index up 5% last month.
Toward the end of June, Netflix stock surged on the day Apple’s new hit film, F1:The Movie, hit theaters. That suggests that streaming tech giants can produce theater-level quality films that can be hits at the box office. Netflix has had some limited theater runs, but it doesn’t seem to have plans to make this a major part of its model.
To top off the month, it got another round of applause after NASA announced that it would stream rocket launches on Netflix starting this summer.
Management recently boasted that it believes it can reach a $1 trillion valuation by 2030. That implies nearly doubling — which may or may not happen — but Netflix has demonstrated resilience and innovation over many years, and it’s likely to keep changing with the times and offer value for shareholders.
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Jennifer Saibil has positions in Apple. The Motley Fool has positions in and recommends Apple and Netflix. The Motley Fool has a disclosure policy.
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