Netflix stock takes aim at broadcast TV after it 'won streaming wars'
The global streaming market may be oversaturated, but Netflix stock (NFLX) continues to defy expectations, soaring to fresh all-time highs amid record-breaking subscriber growth.
Last week, Netflix stock wrapped up its strongest weekly gain since January, closing at $897.79 per share. While the stock has experienced fluctuations this week, it boasts an eye-popping 84% gain year-to-date.
For context, only 15 companies within the S&P 500 have managed to outperform Netflix this year. At its current valuation, Netflix’s market capitalization stands at $370 billion.
Netflix is riding high following a stellar fiscal third quarter, reporting earnings of $5.40 per share on $9.83 billion in revenue—comfortably surpassing Wall Street’s expectations.
By the quarter’s end, Netflix had amassed 282.7 million paid memberships, adding 5.1 million new subscribers in just three months.
What’s particularly noteworthy is the growth of Netflix’s ad-tier memberships, which increased by 35% quarter-over-quarter. This signals a promising runway for the company’s burgeoning advertising business.
Looking ahead, Netflix projects its full-year revenue will hit $44 billion, fueled by its investment in original programming. Recent hits include The Perfect Couple, Tokyo Swindlers, Emily in Paris, and Nobody Wants This, alongside movies like Beverly Hills Cop: Axel F and Rebel Ridge.
Citi analysts hailed Netflix’s Q3 performance as exceeding market expectations, while its 2025 forecast was described as “relatively in line with consensus estimates.”
Netflix’s tight cost controls—marked by significant budget cuts and hiring freezes over the past two years—appear to be bearing fruit, at least for now.
Broadcast TV: a new frontier
The streaming giant is now experimenting with live programming and sports content, a move aimed at solidifying its lead in the streaming wars.
Starting in January, Netflix will stream WWE’s weekly wrestling show Raw. Despite declining ratings, Raw still garners a solid 1.3 million viewers weekly. Netflix reportedly paid $5 billion over 10 years for the broadcast rights.
The company is also preparing to stream a Christmas Day NFL game in both 2025 and 2026, further expanding its live content portfolio.
This shift marks a calculated risk as Netflix fends off competition from Amazon Prime, Disney+, HBO Max, Peacock, and Paramount—each boasting millions of subscribers.
“Netflix is clearly running away with the ball, while media-based streaming companies struggle to even get on the field,” said Barton Crockett, managing director at Rosenblatt Securities, in an interview with Yahoo Finance.
Equity research firm Moffett Nathanson echoed this sentiment, asserting that “Netflix won the streaming wars.”
By 2024, Netflix’s direct-to-consumer profits climbed more than 60% to $4.5 billion. In stark contrast, competitors like Disney, Paramount, and Peacock reported losses for the same metric.