Netflix's Big Wins Are Not Enough

And, Union Pacific might buy Norfolk Southern.

July 18, 2025

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Today is Friday, July 18, 2025.

The Early Bird Index today is 91.02

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Netflix's Big Wins Are Not Enough

Despite posting good financial earnings results on Thursday, Netflix $NFLX ( ▲ 1.91% ) fell 1.86% in after-hours trading.

Financials: Netflix reported earnings of $7.19 per share and revenue of $11 billion in the past quarter. Both were better than expected.

Details: Revenue in the quarter grew 16% year-over-year, and the operating margin of 34% expanded by seven points.

Outlook: Netflix also boosted its revenue outlook. The company forecasts annual revenue of $44.8-$45.2 billion, up from $43.5-$44.5 billion.

Early Bird’s Nest Egg Gains: Netflix’s strong quarter was overshadowed by the extremely high bar set by its recent stock performance and investor expectations. 

  • The after-hours dip reflects the market’s demand for exceptional—not just strong—growth and outlook from stocks trading at premium valuations.

  • The lack of quarterly subscriber numbers may have also been a negative factor.

Final Thoughts: Netflix is in the middle of one of its best years. The stock is up over 40%.

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Notables

Notable Earnings Today: American Express (NYSE: AXP), 3M (NYSE: MMM), Huntington Banc (Nasdaq: HBAN), Regions Financial (NYSE: RF), SLB (NYSE: SLB), Truist (NYSE: TFC), Charles Schwab (NYSE: SCHW), Ally Financial (NYSE: ALLY), Autoliv (NYSE: ALV), Comerica (NYSE: CMA).

Notable IPOs Today: Majestic Ideal Holdings Ltd Ordinary Shares (Nasdaq: MJID).

Notable Equity Crowdfunding Campaigns Ending Today: Botanika SLC (Honeycomb), 128 Photo Studio (Honeycomb), From The Farm (Wefunder), Etowah Meadery (Honeycomb).

Notable Economic Events Today: Majestic Ideal Holdings Ltd Ordinary Shares (Nasdaq: MJID).

Union Pacific Might Buy Norfolk Southern

Norfolk Southern $NSC ( ▲ 3.65% ) jumped 4.89% in after-hours trading on Thursday, and Union Pacific $UNP ( ▼ 1.6% ) ticked up 0.51% after a report about both railroad operators emerged.

Details: The Wall Street Journal reported on Thursday that Union Pacific is exploring a deal to acquire Norfolk Southern. Talks are in the early stages, according to the report, and there are no guarantees a deal will happen.

Bigger Picture: If the deal went through, the combination would result in the largest rail operator in the country. The report was so powerful on Thursday that rival CSX $CSX ( ▲ 3.73% ) jumped 1.45% in after-hours trading.

Final Thoughts: Union Pacific’s stock is slightly in the red this year, while Norfolk Southern’s stock is up 15%.

Interactive Brokers Posts Good Financial Results

Online brokerage firm Interactive Brokers Group $IBKR ( ▼ 0.03% ) jumped 4.51% in after-hours trading on Thursday after reporting good financial earnings results.

Financials: Interactive Brokers reported earnings of 51 cents per share and revenue of $1.48 billion in the past quarter. Both were better than expected.

Final Thoughts: This is good news for a stock that was already up 30% this year.

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The contents of Early Bird are intended for informational and entertainment purposes only. They do not constitute trade or investment recommendations and they are not financial or legal advice. Readers are encouraged to consult licensed professionals for personalized guidance regarding their financial or legal situations.