Shares of Netflix (NFLX) have risen to a new all-time high as the tech rally surges after Donald Trump emerged victorious over Kamala Harris in the presidential election.
The stock is currently trading above $790 per share and is up more than 60% since the start of the year, with a 10% gain in the past month – far better than the broader markets.
The gains extend beyond the recent Trump-fueled rally, however, as Netflix stands out among a list of battered media sector names.
The streamer has added more than 50 million paying subscribers since launching its anti-password campaign in May 2023. Full-year operating margins are expected to be 27%, with management noting that the company has the potential to ultimately secure margins comparable to broadcast networks. which have historically been between 40% and 50%.
And in the first three quarters of 2024, Netflix generated about $6.9 billion in net revenue. The competitors don’t even come close.
Disney (DIS) and Paramount Global (PARA) just reported their first quarterly profits in their respective streaming businesses earlier this summer. A shift for the industry, yes, but not a solution to the problems plaguing traditional media, with Comcast (CMCSA) the latest company to consider ditching its cable networks.
“Netflix is clearly running away with the ball and the media-based streaming companies are struggling to even get on the field,” Barton Crockett, managing director at Rosenblatt Securities, previously told Yahoo Finance.
Read more about Netflix’s dominance and why analysts say Netflix has won the hard-fought streaming wars here.
