Zacks Investment Ideas feature highlights: Netflix, Disney, Amazon and Paramount Global

For Immediate ReleaseChicago, IL – July 21, 2025 – Today, Zacks Investment Ideas feature highlights Netflix NFLX, Disney DIS, Amazon AMZN and Paramount Global PARA.Buy, Hold or Take Profits in Netflix After Q2 Earnings Report?Investors appear to be a bit underwhelmed by Netflix’s Q2 report, despite the streaming king posting favorable quarterly results after market hours on Thursday.Down 5% in this morning's trading session, some profit taking may also be attributing to the post-earnings dip in Netflix stock as NFLX is still up more than +30% year to date and is sitting on monstrous gains of nearly +500% in the last three years.This makes it a worthy topic of whether it's time to get in on the profit taking, buy the post-earnings dip, or hold Netflix stock.Netflix’s Favorable Q2 ResultsExceeding earnings expectations, Netflix’s Q2 net income came in at $3.13 billion or $7.19 per share and above the Zacks EPS Consensus of $7.07. Year over year, Netflix’s Q2 EPS spiked 47% from $4.88 in Q2 2024. This came on Q2 sales of $11.07 billion, which increased 16% from the comparative quarter but slightly missed estimates of $11.08 billion.Notably, Netflix’s operating margin during Q2 was 34.1%, up from 24% a year ago, with free cash flow soaring 91% to $2.3 billion.Netflix’s Q2 Subscriber GrowthAlthough Netflix no longer reports official quarterly subscriber numbers, the streaming giant is thought to have added 5.1 million new net subscribers during Q2. However, this fell below many analysts' forecast of 6 million and was down from 8.05 million new net subscribers in Q2 2024.Still, Netflix’s total subscribers have risen to over 300 million thanks to its global reach, strong content pipeline, and the growth of its more affordable ad-tier, keeping the company firmly ahead ofDisney’s streaming services and other platforms such as Amazon’s Prime Video and Paramount Global.Netflix's Revenue Guidance & Margin OutlookOptimistically, Netflix raised its full-year 2025 revenue guidance to $44.8-$45.2 billion from its previous forecast of $43.5-$44.5 billion. The current Zacks Consensus calls for Netflix’s top line to expand 14% this year to $44.55 billion, with fiscal 2026 sales projected to increase another 12% to $50.05 billion.It’s also noteworthy that Netflix slightly increased its full-year operating margin guidance from 29% to 29.5%, although many analysts were looking for a margin range between 30-31%.Monitoring Netflix’s P/E ValuationWhat may have dampened excitement for Netflix’s favorable Q2 report is that at 50X forward earnings, NFLX does trade at a noticeable premium to the broader market, with the S&P 500 at 24X. This is also well above Disney and Paramount at 21X and 9X forward earnings, respectively, and even Amazon at 35X.Bottom LineFor now, Netflix stock lands a Zacks Rank #3 (Hold). Enthusiasm for Netflix’s growth expectations appears to be already priced into its stock, as investors may have been looking for more exceptional upside surprises in its Q2 results.That said, holding NFLX in the portfolio is still worthwhile considering Netflix’s market dominance, as more than 20% EPS growth is in the forecast for FY25 and FY26, and should help the streaming king grow into its somewhat stretched P/E valuation.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpMedia 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. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.One Big Gain, Every Trading DayTo help you take full advantage of this market, you’re invited to access every stock recommendation in all our private portfolios - for just $1.Zacks private portfolio services that closed 256 double and triple-digit winners in 2024 alone. That’s about one big gain every day the market was open. Of course, not all our picks are winners, but members have seen recent gains as high as +627% +1,340%, and +1,708%.Imagine how much you could profit with a steady stream of real-time picks from all our services that cover a number of strategies to suit a variety of investing and trading styles.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Netflix, Inc. (NFLX): Free Stock Analysis Report The Walt Disney Company (DIS): Free Stock Analysis Report Paramount Global (PARA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks