The Nasdaq Composite has been on a thrilling ride for over two years, with no signs of slowing down. In 2023, it rose 43%, and in 2024, it added another 29%. History suggests that the tech-centric index will continue to soar in 2025, delivering additional gains of 19% on average in the years following a 28% or more gain. This bull market is expected to last 1,866 days, on average, or more than five years, giving the rally plenty of room to run.
One unstoppable stock that is surging right now is Netflix (NFLX). The streaming pioneer reported robust financial results in Q4 2024, with revenue of $10.2 billion climbing 16% year over year and earnings per share (EPS) of $4.27 soaring 102%. This performance was driven by strong paid subscriber additions of more than 18.9 million, surging 44% compared to the previous year. The company's expanding operating margins, which increased by 530 basis points to 22.2%, also contributed to its impressive financial performance.
Netflix's subscriber growth is a significant factor driving its stock surge. The company's ability to attract and retain subscribers, both domestically and internationally, is a testament to its compelling content offerings and innovative business model. In 2025, Netflix is expected to continue its subscriber growth momentum, with management forecasting a robust full-year 2025 revenue forecast of $44 billion at the midpoint of its guidance, representing growth of about 13%.
Netflix's strategic initiatives, such as expanding its live streaming offerings and entering the gaming market, have the potential to drive further growth and attract new subscribers. The company's success with Squid Game: Unleashed, its first mobile game, demonstrates its ability to leverage its intellectual property to create engaging and popular content across different platforms. Additionally, Netflix's expansion into live events, such as the Jake Paul vs. Mike Tyson fight and Christmas Day NFL games, has the potential to attract new viewers and generate additional revenue streams.
The surge in Netflix's stock price in 2025 aligns with the overall market trends, which include a bullish outlook for the tech sector and the broader market. The Nasdaq Composite, which is heavily weighted towards technology stocks, has been on a non-stop thrill ride for more than two years and shows no signs of slowing down. Factors contributing to the rally include waning inflation, falling interest rates, higher corporate earnings, and the advent of artificial intelligence (AI). The bull market is expected to continue, with history suggesting that the tech-centric index will deliver additional gains of 19% on average in the years following a 28% or more gain.
In conclusion, the Nasdaq Composite is expected to soar in 2025, driven by the strong performance of tech stocks and the broader market trends. Netflix, with its robust financial performance, expanding subscriber base, and strategic initiatives, is one unstoppable stock that is surging right now and is well-positioned to continue its growth momentum in the coming year.
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