Key Financial Updates on Netflix and Alphabet
As of the latest earnings reports, Netflix’s revenue increased by 17.6% in Q4 2024, a rise from 17.2% in Q3, bringing in over $1.5 billion from advertising, which represents 3.3% of its total revenue. Netflix boasts more than 325 million subscribers across over 190 countries. The company is projecting an operating margin increase from 29.5% in 2025 to 31.5% in 2026.
In comparison, Alphabet’s revenue grew by 16% year-over-year in Q3 2023, with its cloud computing segment, making up 15% of total revenue, surging by 34%. The Google Cloud segment achieved an operating income of $3.6 billion, reflecting an 85% year-over-year increase. Alphabet’s Google Services, which includes YouTube and other revenue streams, rose by 14% year-over-year.
Netflix is in the process of acquiring Warner Bros. Discovery assets for $82.7 billion, a transaction that could pose risks but also significant opportunities. Analysts suggest that Alphabet may be a more favorable investment due to its diversified business model, unlike Netflix’s pending acquisition which adds a layer of complexity.
