How to Trade Netflix After Q1 2025 Performance

With increased competition from Disney+, HBO Max, Apple TV+, Amazon Prime Video and others, investors and analysts have kept a keen eye on the performance of Netflix. Learn more about Netflix's first-quarter 2025 performance and what analysts are forecasting for the stock. 

This material is for informational purposes only and not financial advice. Consult a financial advisor before making investment decisions.

• The Invest.MT5 account allows you to buy real stocks and shares from some of the largest stock exchanges in the world.
• Risk Warning: Past performance is not a reliable indicator of future results or future performance. All trading is high risk, and you can lose more than you risk on a trade. Never invest more than you can afford to lose as some trades will lose and some trades will win. Start small to understand your own risk tolerance levels or practice on a demo account first to build your knowledge before investing.
• Trading is not suitable for everyone. Trading is highly speculative and carries a significant risk of loss. While it offers potential opportunities, it also involves high volatility, and leveraged trading can amplify both gains and losses. Retail investors should fully understand these risks before trading.

Netflix Q1 2025 Performance

Here are some of the key highlights from the first-quarter 2025 earnings report from Netflix: 

• Earnings per share: $6.61 vs $5.71 expected 
• Revenue: $10.54 billion vs $10.52 billion expected 
• Net income: $2.89 billion, up from $2.33 billion from the prior year 

Netflix beat analyst estimates on most financial performance metrics. In its earnings report and call, it cited that the better-than-expected revenue was helped by higher-than-expected subscription and advertising revenue.  

Earlier in the year, Netflix increased its pricing for all tiers. The ad-supported plan rose to $7.99, the standard plan to $17.99 and the premium plan to $24.99 per month. In the past, investors and analysts were always focused on subscriber growth as the most important metric for Netflix.  

However, the streaming giant has stopped publishing quarterly subscriber data as it tries to shift its strategy to revenue and advertising dollars. In its earnings statement, it said there has been no material change to its business and continues to forecast full-year revenue between $43.5 billion and $44.5 billion.  

The mere fact that the company decided not to alter any of its long-term projections has some analysts believing it's not as confident about the performance in the second half of the year. With US consumer sentiment at historic lows and uncertainty around how trade tariffs will affect the economy, subscribing to a streaming service may be seen as a luxury and force many to cut back.  

This has led some analysts to move to a hold rating on the stock, as highlighted below.

Netflix Stock Forecast - What do the Analysts Say?

According to 38 analysts polled by TipRanks for an Netflix stock forecast in the past 3 months, there are currently 29 buy, 9 hold and 0 sell ratings on the stock. The highest price level for a Netflix stock forecast is $1,514.00, with the lowest price target at $833.00. 

The average price target for a Netflix stock forecast is $1,149.00.

An Example Trading Idea for the Netflix Stock Price

The following trading examples are for educational purposes only and do not constitute investment advice. Investors should conduct independent research before making trading decisions.

An example trading idea for the Netflix share price could be as follows:  

• Buy the stock on a break above its post-earnings high at $1,023.00 to allow for volatility. 
• Target just below the highest analyst price target of $1,514.00. 
• Keep your risk small at a maximum of 5% of your total account.   
• Time Line = 1 – 12 months  
• If you buy 10 Netflix shares:  
• If target is reached = $4,910.00 potential profit [($1,514.00 - $1,023.00) * 10 shares].

Remember that markets go up and down. In fact, the stock price may even go much further down, especially due to the uncertainty around the impact of US President Donald Trump's trade tariffs and weakening consumer sentiment.

It is important to exercise good risk management and always know how much you could potentially lose on a trade and the risks involved, as well as the costs.

With the Admiral Markets Invest.MT5 account, you can buy and sell US stocks with a commission from $0.02 per share. This means buying 10 shares in Netflix stock would result in a commission of $0.20 ($0.02 * 10 shares) for executing a per-side transaction.

However, there is a minimum transaction fee of $1. So, the example trading idea above would result in a commission of $1 overall.

How to Buy Netflix Stock in 4 Steps  

With Admiral Markets, you can buy shares in US companies like Netflix with a commission from $0.02 per share and a minimum commission of $1. 

1. Open an account with Admiral Markets to access the dashboard.
2. Click on Trade or Invest on one of your live or demo accounts to open the web platform.
3. Search for your stock in the search window at the top.
4. Input your entry, stop-loss and take profit levels in the trading ticket.

Do You See the Netflix Stock Price Moving Differently?   

If you believe there is a higher chance the share price of Netflix will move lower, then you can also trade short using CFDs (Contracts for Difference). However, these have higher associated risks and are not suitable for all investors. Learn more about CFDs in this How to Trade CFDs article.

INFORMATION ABOUT ANALYTICAL MATERIALS: 

The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admiral Markets' investment firms operating under the Admiral Markets trademark (hereinafter “Admiral Markets”). Before making any investment decisions, please pay close attention to the following:  

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3. With view to protecting the interests of our clients and the objectivity of the Analysis, Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.  

4. The Analysis is prepared by an analyst (hereinafter “Author”). The Author, Jitanchandra Solanki, is an employee of Admiral Markets. This content is a marketing communication and does not constitute independent financial research.

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7. Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.