Zacks Investment Ideas feature highlights: Meta Platforms and Netflix

For Immediate ReleaseChicago, IL – February 24, 2025 – Today, Zacks Investment Ideas feature highlights Meta Platforms META and Netflix NFLX.2 Red-Hot Stocks to Buy for Big Growth: META & NFLXThroughout the 2024 Q4 earnings cycle, we’ve seen several notable companies, including Meta Platforms and Netflix post results that saw a boost from advertising results.Both stocks have been red-hot over the past year on the back of strong quarterly results, with the current EPS outlooks alluding to further gains. Let’s take a closer look at the strong results from each.Meta’s Advertising Efforts Pay OffConcerning headline figures in its release, Meta Platforms posted adjusted EPS of $8.02 and record sales of $48.4 billion, reflecting growth rates of 50% and 21%, respectively. Net income of $20.9 billion was the company’s highest read ever.Importantly, the company’s ad business continued to perform at a high level, with revenue of $46.8 billion again exceeding our consensus estimate and reflecting 20% year-over-year growth. The advertising results for META have been rock-solid over recent periods, regularly bringing sizable beats.In addition, META continues to see nice user growth, with Family Daily Active People (DAP) improving 4% year-over-year to roughly 3.4 billion. Average revenue per user has increased likewise amid the strong advertising efforts, improving by a sizable 41% year-over-year.The Family Daily Active People metric includes the company’s entire family of apps, encompassing Instagram, WhatsApp, Facebook, and Messenger, providing a consolidated view of activity.Netflix Ad-Supported Tiers Provide TailwindsNetflix shares have been hot over the past year on the back of strong quarterly results, gaining nearly 80% compared to the S&P 500’s 26% gain. Its latest set of results added to the positivity, with continued user growth and tailwinds from ad-supported memberships pleasing investors.Concerning key metrics in the print, Paid Net Membership Additions throughout the period reached a sizable 18.9 million, crushing our consensus estimate of 9.1 million handily. Subscriber additions for Netflix have remained rock-solid, exceeding our consensus estimate in seven consecutive releases.The favorable reads on subscriber additions have fueled the stock’s bullish run over the past year, with margin expansion also brightening its profitability picture. In Q4, ad-supported plans accounted for over 55% of sign-ups in supported countries, and membership in ad plans grew by nearly 30% quarter over quarter.The stock currently sports a favorable Zacks Rank #2 (Buy), with the revisions trend for its current fiscal year moving higher following its latest results. EPS is forecasted to soar 25% in its current fiscal year.Bottom LineAdvertising efforts from Netflix and Meta are paying off nicely, with each seeing tailwinds in their quarterly results.Both stocks remain prime buy selections for growth-focused investors, with the earnings outlook for each remaining notably bullish.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. 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