April 18 - Netflix stock (NASDAQ:NFLX) jumped 3.5% on Thursday, extended trading after the streaming giant posted better-than-expected quarterly results, driven by gains in both ad revenue and subscriber additions.
The company reported strong $6.61 earnings per share, with millions of new subscribers added in the latest period. Growth in its ad-supported tier contributed meaningfully to revenue, while Netflix said engagement on its live programming continues to surpass internal expectations.
However, analysts are warning of brewing pressure from rising global tariffs. While Netflix doesn't manufacture hardware, it relies on tech infrastructure, imported equipment, and software tools, many of which are subject to international trade policies. Costs tied to global production hubs, including South Korea and India, may rise if tariffs impact the availability or cost of U.S.-based post-production and filming gear.
If production costs rise further, margins could come under strain, even amid strong operational execution. Some analysts also flagged the potential impact of inflation and higher interest rates on consumer behavior, adding to the list of risks facing the company.
This article first appeared on GuruFocus.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.