Netflix Ads Tier Surge 🚀

And, Plug Power’s $200 million offering.

July 19, 2024

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Today is Friday, July 19, 2024.

The Early Bird Index today is 74.52.

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Netflix Ads Tier Surge 🚀

Netflix (Nasdaq: NFLX) slipped by 0.18% in after-hours trading despite reporting strong earnings results and more subscribers on Thursday.

Financials: Netflix reported earnings of $4.88 per share in the past quarter and revenue of $9.55 billion; both were better than expected.

Details: Paid memberships grew 16.5%, including a 34% increase in the ads tier subscription plan. The company will also phase out its ad-free basic plan in the U.S. to aid its ad business.

Quote: “The near term challenge (and medium term opportunity) is that we’re scaling faster than our ability to monetize our growing ad inventory.” - Netflix.

Yes; But: Netlfix only expects revenue to grow 14% in the current quarter, which was lower than expected.

Early Bird’s Nest Egg Gains:Netflix’s ad business has strong potential for success, not just because of its 270 million subscribers. The company’s ability to use targeting stands out as a solid advantage.

  • Netflix's understanding of user preferences and viewing habits enables advertisers to target based on content affinities and viewing patterns, going beyond traditional demographic targeting.

  • Netflix's AI-driven recommendation engine can be used for highly effective ad targeting. 

  • Its semantic-based audience measurement approach can demonstrate ad effectiveness, allowing advertisers to optimize their campaigns.

Final Thoughts: The streaming giant still has a ways to go before the ad business can thrive. Netflix is up 37% this year.

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Notables

Notable Earnings Today: American Express (NYSE: AXP), SLB (NYSE: SLB), Badger Meter (NYSE: BMI), Autoliv (NYSE: ALV), Fifth Third Bancorp (Nasdaq: FITB), Halliburton (NYSE: HAL), Comerica (NYSE: CMA), Travelers Companies (NYSE: TRV), Huntington Bancshares (Nasdaq: HBAN), Regions Financial (NYSE: RF).

Notable IPOs Today: QMMM Holdings Limited Ordinary Shares (Nasdaq: QMMM), Artiva Biotherapeutics, Inc. Common Stock (Nasdaq: ARTV), PS International Group Ltd. Ordinary Shares (Nasdaq: PSIG), Primega Group Holdings Limited Ordinary Shares (Nasdaq: PGHL).

Notable Equity Crowdfunding Campaigns Ending Today: Sirius Brewing (Honeycomb), Reental (Republic), Project Buffalo (Wefunder).

Notable Economic Events Today: N/A.

Plug Power’s $200 Million Offering

Source: Plug Power

The bad year for Plug Power (Nasdaq: PLUG) worsened Thursday when the stock plunged 9.21% in after-hours trading.

Details: Plug Power announced a $200 million offering of common stock to raise funds for general corporate purposes, which drove fear into investors.

Final Thoughts: The hydrogen fuel cell systems company lost a lot of money this year. Plug Power’s stock was down 36% in 2024.

Shiba Inu Drops Due to Platform Hack

The price of the cryptocurrency Shiba Inu fell about 7% Thursday due to reports about WazirX, an India-based crypto platform, getting hacked.

Final Thoughts: While still considered a meme coin, Shiba Inu is up 125% in the last 12 months.

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