Jump to content

Netflix Pops on Earnings Beat


Recommended Posts


  • Netflix reported better-than-expected bottom-line results on Tuesday
  • Third-quarter EPS stood at $3.10 versus a forecast of $2.12. Revenue came in at $7.93 billion, slightly below expectations of $7.98 billion

Where next for Netflix shares as 25% of subscribers poised to quit? | IG  South Africa


Netflix soared in the extended session after announcing strong quarterly numbers and offering constructive forward-looking projections. At the time of writing, NFXL shares were up about 15% to $278.00 after a tepid performance during regular trading hours.

According to Tuesday’s financial disclosure, third-quarter revenue stood at $7.93 billion, slightly below analysts' estimates of $7.98 billion, representing a 5.9% increase compared to the same period last year. With this result, normalized EPS clocked in at $3.10, blowing past expectations of a gain of $2.11 per share.

In terms of membership growth, management said that 2.41 million subscribers were brought onboard, beating the forecast of 1.0 million and reversing all losses during the first half of the year. In addition, the streamer said it expects to add 4.5 million paying users for the last three months of the year, slightly above estimates of 3.9 million.


Normalized EPS: $3.10 vs. $2.12 per share expected, according to Bloomberg

Revenue: $7.93 billion vs. $7.98 billion expected, according to Bloomberg

Global Paid Net Subscribers: 2.41 million new subscribers vs. expectations of a gain of 1 million




Netflix Chart Prepared Using TradingView

While the results were largely positive, investors placed less importance on past performance and chose to focus on profitability. In this regard, Netflix said the worst of the slowdown is over and that it is on a path to reaccelerate growth, but noted that the upcoming ad-supported tier will not have a material contribution to fourth-quarter performance (results may take longer to play out).

The release of Netflix's earnings follows a somewhat positive day on Wall Street. Stocks surged at the cash open, but retraced some of their advance throughout the day on cautious sentiment and unconfirmed reports that Apple will cut iPhone 14 production amid weak consumer demand. After all the twists and turns in the day, the S&P 500 climbed 1.14%% to 3,719, while the Nasdaq 100 edged up 0.77% to 11,147.



Oct 18, 2022 | DailyFX
Diego Colman, Strategist

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
    • Total Posts
    • Total Members
    • Most Online
      10/06/21 10:53

    Newest Member
    Joined 23/09/23 05:19
  • Posts

    • Just now, according to Glassnode data, the number of addresses holding more than 100 BTC has reached a four-month low, currently standing at 15,955.
    • Bitcoin and other major crypto experienced a dip in value on Thursday, erasing gains made earlier in the week. The decline came after the Federal Reserve signaled that interest rates would remain high for an extended period, with Bitcoin retreating 2.3% to $26.5K. Despite the bearish pressure,  the founder and CEO of Bitcoin joint mining company Xive,  Didar stated that the stagnant rate increase is positive for Bitcoin. He suggested that this could reduce the attractiveness of mainstream financial assets to institutional investors in the long term, potentially driving a new rally in Bitcoin's price. Major altcoins and exchange tokens also struggled on Thursday, with ETH changing hands at $1,585, down about 2.6% from Wednesday. Other altcoins such as BNB and BGB also experienced losses. Despite these challenges, some analysts believe that Bitcoin is likely to remain within its recent range between $25,000 and $30,000. Riyad from digital asset data platform Kaiko, noted that the market needs a catalyst to mount any serious rally.  What are your thoughts? 
    • Traditional banking systems served as the gatekeepers of financial services for long, dictating how people access loans, save, and invest in opportunities. Typically controlled by a centralized system with a single authority such as a bank or government in total charge, this centralization is limited by high fees, restricted accessibility and slow transaction speed. Dentralized finance, DeFi, got introduced as a blockchain-based financial system that removes intermediaries or central authorities, and utilizes smart contracts instead. By eliminating intermediaries, DeFi delivers core benefits like improved accessibility into the financial system for everyone having internet connection regardless of their location. DeFi is also valued for its transparency. While traditional banking system often deny customers audits on how their assets are being managed, DeFi, through the help of blockchain allows anyone access to tracking and auditing transactions, thereby raising trust. Furthermore, DeFi also offers various financial services and products like DEX, lending and borrowing, stablecoins etc, all known to proffer varied innovative solutions, while operating 24/7 in contrast to traditional finance. DeFi isn’t flawless as issues like insecurity, lack of consumer protection etc are still prevalent; however, the growth of DeFi has been impressive; since its introduction, the total value locked in DeFi protocols has grown significantly indicating that the demand for DeFi services is fast growing. DeFi seems to be redefining financial industry by offering an alternative to traditional banking systems. With the increasing adoption, can we expect to see an overhaul in the way we access financial services?        
  • Create New...