KUALA LUMPUR, July 29 (Bernama) -- Bursa Malaysia rebounded to close higher on Wednesday on selective buying of defensive stocks after a volatile trading session. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said consumer products and services stocks lifted the key index higher, overcoming lingering geopolitical concerns. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 3.08 points to 1,715.56 from yesterday’s close of 1,712.48. The benchmark index, which opened 1.91 points higher at 1,714.39, moved between 1,710.79 and 1,720.59 during the day’s trading. In the broader market, gainers outstripped decliners 550 to 476, while 612 counters were unchanged, 1,129 untraded, and 48 suspended. Turnover rose to 2.96 billion units valued at RM2.48 billion from 2.94 billion units valued at RM2.56 billion on Tuesday.
Netflix reported impressive Q2 2025 earnings with margin expansion, record free cash flow, and raised guidance—yet the stock dipped post-market due to valuation concerns.
Key Financial Highlights
Revenue: $11.08B (+15.9% YoY) — Beat market estimate of $11.06B
Operating Income: $3.8B (+45% YoY)
Net Income: $3.13B (+45.6% YoY)
EPS: $7.19 (+47.3% YoY)
Operating Margin: 34% (vs. 27% in Q2 2024)
Free Cash Flow: $2.3B (up from $1.2B in Q2 2024)
Regional Revenue
UCAN: $4.93B – Largest contributor, strong pricing momentum
APAC: $1.31B – Fastest growth (+24% YoY)
LATAM & APAC: Slightly below expectations
Growth Drivers
Blockbuster Content Lineup
Squid Game S2, Stranger Things, Wednesday, Knives Out, Taylor vs. Serrano 3
Drives engagement, stickiness, and subscriber growth.
Price Hikes Paying Off
U.S. ad-tier: $6.99 → $7.99
Standard plan: $15.49 → $17.99
Premium plan: $22.99 → $24.99
Result: UCAN revenue growth surged to 15% (from 9% in Q1)
Ad Business Accelerating
Netflix Ads Suite now fully launched
94M monthly active users (MAUs), ~40M on ad-tier (Bloomberg estimate)
Projected ad revenue:
2025: ~$3B
2026: ~$5B (~10% of total revenue)
Upgraded Full-Year Outlook
Revenue Guidance: $44.8B–$45.2B (prev. $43.5B–$44.5B)
Operating Margin: Raised from 29% → 29.5%
Free Cash Flow: Raised from ~$8B → $8–8.5B
Strong cash flow may support more share buybacks
Investor Takeaway
Netflix delivered strong Q2 results and raised guidance for 2025, yet the post-earnings dip reflects valuation concerns, not fundamentals. At ~33x 2026E EBITDA, Netflix trades above peers, suggesting a pause may be in store despite long-term upside from ads and pricing power.
Watchlist Verdict: High-quality growth, but near-term upside may be capped without multiple compression or stronger macro catalysts.
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