Netflix Crushed Q4 Thanks To Sports, Squid Game, Says Gary Black: Analyst Highlights Low Attrition Despite Price Hikes, Predicts Stock Upside

Netflix (NFLX) has crushed its Q4 2024 earnings, thanks to a strong performance in live sports and the return of hit series like "Squid Game." The streaming giant's impressive results have analysts like Gary Black predicting further stock upside, despite concerns about subscriber attrition and price hikes. Let's dive into the details and explore what makes Netflix a compelling investment opportunity.



Netflix added a record 19 million net new subscribers in Q4 2024, bringing its global membership to over 300 million. This impressive growth was driven by a mix of programming, including the highly anticipated return of "Squid Game" and live sporting events like the Jake Paul vs. Mike Tyson boxing match and NFL games on Christmas Day. According to research firm Antenna, the boxing match delivered a record number of sign-ups for one day, dwarfing even Netflix's first National Football League games.

Despite concerns about subscriber attrition due to pricing changes and account sharing crackdowns, Netflix's user base remained stable. Aicel Technologies' Netflix retention data reveals that the company's user base grew slightly month-over-month in December 2023, indicating strong retention despite the pricing adjustments. This stability is crucial for Netflix as it continues to refine its subscription models and pricing strategies.

Netflix's ad-supported plans have also contributed to its subscriber acquisition and retention efforts. In Q4 2024, over 55% of Q4 sign-ups in ad-supported regions came from these lower-cost plans, demonstrating the appeal of ad-supported tiers to cost-conscious consumers. Additionally, ad membership increased nearly 30% quarter over quarter, further highlighting the success of these plans in driving subscriber growth and retention.



Netflix's strategic content investments, particularly its focus on non-English language content, have also driven global subscriber growth and engagement. The Korean series "Gyeongseong Creature" received 13.6 million views by January 21st, 2025, demonstrating the global appeal of Korean dramas. Additionally, the success of "Squid Game" and other non-English language content has contributed to Netflix's impressive subscriber growth and engagement.



In conclusion, Netflix's Q4 2024 results highlight the company's resilience and growth potential, driven by strategic content investments, stable user retention, and the success of its ad-supported plans. Despite concerns about subscriber attrition and price hikes, Netflix's impressive performance underscores the platform's robust market presence and investment appeal. As analysts like Gary Black predict further stock upside, investors should consider Netflix as a compelling opportunity in the streaming market.