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Can Netflix leverage mega live sports deals to drive growth?

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Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Streaming giant Netflix (NFLX:NASDAQ) made waves last year as it piled into live sports for the first time, inking blockbuster deals with WWE and the NFL, and viewers followed, adding 22.4 million net new subscribers as of the third quarter, its best year since 2020.
It helped seed an 85% share-price surge last year and shareholders are excited about 2025 prospects, as the company readies to report fourth-quarter and full-year 2024 results on 21 January.
The consensus expects Netflix to post $10 billion-plus of quarterly revenue for the first time, although earnings are likely to show the cost of its sports expansion.
The projected $4.20 of quarterly EPS (earnings per share) would be the lowest of the year, but there are hopes 2025 will bring more stability to margins.
Netflix, which last year overtook BBC 1 in UK viewing figures, is targeting 2025 operating margins of 28%, a good deal higher than previous years as the company strikes a better balance between near-term margin expansion with business growth investment.
The Koyfin consensus has Netflix chalking-up revenues of $43.7 billion and $48.4 billion in 2025 and 2026, with a steep rise in EPS to $23.91 and $28.61, new record highs.
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