Netflix shares up as solid revenue outlook eases tariffs concerns

Published 21/04/2025, 11:14
© Reuters.

Investing.com -- Netflix (NASDAQ:NFLX) shares climbed more than 3% in premarket trading on Monday, after the company’s strong annual revenue outlook helped ease concerns about the impact of economic uncertainty and rising tariffs.

Co-CEO Greg Peters said the company has remained steady through past downturns and noted there have been no major changes in subscriber behavior, following better-than-expected first-quarter results released last Thursday.

Netflix also maintained its 2025 revenue forecast, projecting between $43.5 billion and $44.5 billion.

Those reassurances came as investors grow increasingly wary of a potential recession linked to President Donald Trump’s tariff policies, which some fear could lead consumers to cut back on non-essential spending, including streaming services.

"Even in a global recession scenario, Netflix is likely to be highly resilient given the price-to-value of the service remains very attractive," said Jeffrey Wlodarczak, an analyst at Pivotal Research Group.

The company also highlighted strong performance from its ad-supported tier, which made up 55% of new sign-ups in markets where it is available.

Earlier this month, the Wall Street Journal reported that Netflix plans to double its revenue from $39 billion in 2024 and reach approximately $9 billion in global advertising sales by the end of the decade.

The company has raised the stakes on maintaining consistent revenue growth after deciding to stop disclosing subscriber numbers starting this year.

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