Shares of Netflix (NFLX) are soaring after fourth-quarter results beat expectations, raising its 2025 revenue forecast and adding nearly 19 million subscribers.
Michael Pachter, managing director of equity research at Wedbush Securities, joins Morning Brief to highlight the success of Netflix's ad-supported layer, which has helped reduce churn.
Pachter says the addition of the cheaper ad tier “has been overstepped [Netflix’s] wildest dreams” because they were able to “convince quitters to move to an ad-supported tier.”
In terms of live sports, Pachter believes Netflix should focus on special events like the FIFA Women's World Cup, rather than competing with Amazon (AMZN) and YouTube for full-season sports rights.
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This post was written by Josh Lynch
