Lights, Cameras, Margins!
My dears, Netflix has done something quite splendid this quarter—something that demands the attention of any investor with an eye for both spectacle and substance. Revenue for Q1 rose to a fetching $10.5 billion, up 13% from last year, while operating income leapt a vigorous 27%. That brings their margin to a glossy 31.7%, up from 28.1% the year prior, with further gains forecasted. Granny does so love a company with flair *and* fiscal discipline.
Now, I won’t pretend the streaming battlefield isn’t littered with competitors. But Netflix, ever the savvy producer, is expanding into ads, live events, and games—three arenas where others often stumble in heels. WWE RAW now enjoys a prime billing on the global Top 10, and Taylor vs. Serrano 3 is set to stream in July, promising another cultural moment wrapped in dollar signs.
The content machine shows no signs of fatigue: “Adolescence,” “Back in Action,” and “Counterattack” are but a few from a parade of international hits. With $2.7B in free cash flow and $3.5B spent repurchasing shares this quarter, the house is flush and the lighting just right.
Add to this a robust plan for ad-tech expansion and a Christmas Day NFL slot, and it’s clear the directors at Netflix are not just playing for the box office—they’re scripting their legacy. Granny is no fangirl, but she knows a good story when she sees one. And this, my darlings, is Oscar-worthy.
Granny’s Verdict: Allocate. When they’re running this tight a ship and throwing this many soirées, you don’t wait to be cast—you audition early.
