Netflix Inc
NASDAQ:NFLX

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Netflix Inc
NASDAQ:NFLX
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Price: 875 USD Market Closed
Market Cap: 374B USD
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Operating Margin
Netflix Inc

25.7%
Current
20%
Average
2.5%
Industry

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
25.7%
=
Operating Profit
9.6B
/
Revenue
37.6B

Operating Margin Across Competitors

Country US
Market Cap 374B USD
Operating Margin
26%
Country US
Market Cap 203.4B USD
Operating Margin
13%
Country LU
Market Cap 96.9B USD
Operating Margin
5%
Country NL
Market Cap 44.5B EUR
Operating Margin
14%
Country US
Market Cap 30B USD
Operating Margin
5%
Country US
Market Cap 24.7B USD
Operating Margin
-1%
Country US
Market Cap 24.3B USD
Operating Margin
20%
Country CN
Market Cap 18.5B USD
Operating Margin
24%
Country FR
Market Cap 16.5B EUR
Operating Margin
3%
Country US
Market Cap 15.2B USD
Operating Margin
15%
Country US
Market Cap 14.2B USD
Operating Margin
-2%
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Netflix Inc
Glance View

Economic Moat
Narrow
Market Cap
374B USD
Industry
Media

In the heart of Silicon Valley, amidst its rapid technological evolution, Netflix Inc. emerged from a simple DVD rental service by mail into a streaming colossus that altered the entertainment landscape. Founded in 1997 by Reed Hastings and Marc Randolph, the company's pivot to online streaming in 2007 marked the beginning of a new era. This agile transformation allowed Netflix to capitalize on the burgeoning capabilities of broadband internet, leading to their now-iconic subscription service that offers unlimited streaming of films, TV shows, and documentaries. Distinguished by its user-friendly interface and algorithm-driven recommendations, Netflix hooked audiences worldwide and accrued a massive subscriber base. Netflix's revenue model predominantly hinges on its subscription fees, which deliver a steady and predictable stream of income. These monthly fees form the backbone of its revenue, supporting the company's continued investment in not only buying rights to licensed content but more critically, producing original programming under its streaming brand. Hits like "Stranger Things" and "The Crown" have not only captivated viewers but also cemented Netflix’s reputation as a creative powerhouse in content creation. Netflix's global reach allows for content tailored to local tastes while also offering it across borders, thereby maximizing its investments. The company’s strategy of reinvesting a significant portion of its revenue into fresh content has cemented its competitive edge, driving subscriber growth and maintaining its status as a premiere streamer.

NFLX Intrinsic Value
403.64 USD
Overvaluation 54%
Intrinsic Value
Price
What is Operating Margin?

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
25.7%
=
Operating Profit
9.6B
/
Revenue
37.6B
What is the Operating Margin of Netflix Inc?

Based on Netflix Inc's most recent financial statements, the company has Operating Margin of 25.7%.