Netflix Throws Shade At Rivals

And, United Airlines sees growth.

Steven Lerner 19.Oct.2022

Today is Wednesday, October 19, 2022.

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Netflix Throws Shade At Rivals

Shares of Netflix (Nasdaq: NFLX) jumped 14.38% in after-hours trading on Tuesday after the streaming giant reported positive earnings results.

Financials: Netflix reported earnings of $3.10 per share and revenue of $7.93 billion; both were better than expected.

Calling Out Rivals: In its earnings report, Netflix was so pleased with its financial results that it took time to subtly call out its streaming rivals: “Our competitors are investing heavily to drive subscribers and engagement, but building a large, successful streaming business is hard - we estimate they are all losing money, with combined 2022 operating losses well over $10 billion, vs. Netflix's $5 to $6 billion annual operating profit.”

Subscriber Growth: Netflix added 2.4 million new subscribers in the quarter, higher than its forecast of 1 million new subscriptions. That includes 1.4 million new subscribers from the Asia-Pacific region.

Challenge: However, Netflix identified the appreciation of the U.S. dollar as a significant headwind.

Stock Price: The stock is down 59% this year, but those losses have subsided in the past 30 days.

Final Thoughts: After two straight quarters of subscriber losses, it is great to see Netflix growing its subscriber count again. When the company rolls out its ad-supported business across all markets, there could be more growth.

Notables

Notable Earnings Today: Tesla (Nasdaq: TSLA), ASML (Nasdaq: ASML), Procter & Gamble (NYSE: PG), IBM (NYSE: IBM), Ally Financial (NYSE: ALLY), Lam Research (Nasdaq: LRCX), Abbott Labs (NYSE: ABT), Alcoa (NYSE: AA), Baker Hughes (Nasdaq: BKR), Las Vegas Sands (NYSE: LVS), Nasdaq (Nasdaq: NDAQ), Steel Dynamics (Nasdaq: STLD), Prologis (NYSE: PLD), Kinder Morgan (NYSE: KMI), Travelers (NYSE: TRV), Texas Capital Bancshares (Nasdaq: TCBO), Winnebago (NYSE; WGO), WD-40 (Nasdaq; WDFC), Lithia & Driveway (NYSE: LAD), Knight-Swift Transportation Holdings (NYSE: KNX), Comerica (NYSE: CMA), Crown Castle (NYSE: CCI), Equifax (NYSE: EFX), PPG Industries (NYSE: PPG).

Notable IPOs Today: Alopexx, Inc. Common Stock (Nasdaq: ALPX), Aquaron Acquisition Corp. Common Stock (Nasdaq: AQU), Intensity Therapeutics, Inc. Common stock (Nasdaq: INTS).

Notable Equity Crowdfunding Campaigns Ending Today: Hidrent (StartEngine), Fan Rebellion (StartEngine), Above & Beyond Studios (Netcapital), VenuePilot (StartEngine), PherDal Fertility Science (StartEngine).

Notable Economic Events Today: Building Permits (8:30 a.m. ET), Housing Starts (8:30 a.m. ET), Crude Oil Inventories (10:30 a.m. ET), Beige Book (2:00 p.m. ET).

United Airlines Soars on Strong Results

Shares of United Airlines (Nasdaq: UAL) grew 6.23% in after-hours trading on Tuesday after the airline reported positive financial earnings results.

Financials: United Airlines reported earnings of $2.81 per share and revenue of $12.87 billion; both were better than expected.

Final Thoughts: While the stock is down 18% this year, United Arlines’ strong results suggest that travel demand is growing.

J.B. Hunt Sees Intermodal, Truckload Increase

Shares of J.B. Hunt Transport Services (Nasdaq: JBHT) increased 2.45% in after-hours trading on Tuesday after reporting strong financial results.

Financials: J.B. Hunt reported earnings of $2.57 per share and revenue of $3.84 billion; both were better than expected.

Final Thoughts: The company benefited from an increase in Intermodal revenue and Truckload volume, although volume in Integrated Capacity Solutions did drop in the quarter.