Netflix Grows Subs, Ups Prices
Plus, Tesla’s declining net income.
Today is Thursday, October 19, 2023.
The Early Bird Index today is 53.66.
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Netflix Grows Subs, Ups Prices
Netflix (Nasdaq: NFLX) surged by 12.83% in after-hours trading on Wednesday after the streaming giant reported solid financial earnings results.
Financials: Netflix reported earnings of $3.73 per share in the past quarter, which was better than expected. Revenue reached $8.5 billion, which was expected.
Powering the Story: Netflix added 8.76 million subscribers in the past quarter, way better than expected. This was due in part to the successful rollout of its paid sharing plans. And the company expects to grow its subscriber base by similar increases in the current quarter.
Also: Netflix is raising its prices, which should bring in more revenue in the future.
Final Thoughts: Netflix is up 17% this year, but down 12% in the last 30 days. Still, Netflix is growing (in spite of the actor’s strike shutting down production in Hollywood). This shows that Netflix is still the streaming king.
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Notable Earnings Today: AT&T (NYSE: T), Intuitive Surgical (Nasdaq: ISRG), American Airlines (Nasdaq: AAL), Alaska Air (NYSE: ALK), Badger Meter (NYSE: BMI), Genuine Parts (NYSE: GPC), Lindsay Corp (NYSE: LNN), Manpower (NYSE: MAN), Marsh McLennan (NYSE: MMC), Philip Morris International (NYSE: PM), Pool (Nasdaq: POOL), Webster Financial (NYSE: WBS), WNS (NYSE: WNS), Western Alliance (NYSE: WAL), CSX (Nasdaq: CSX), Blackstone (NYSE: BX), Bank OZK (Nasdaq: OZK), Nokia (NYSE: NOK), WD-40 (Nasdaq: WDFC), KeyCorp (NYSE: KEY), Metropolitan Bank (NYSE: MCB), Freeport-McMoRan (NYSE: FCX), Knight-Swift Transportation (NYSE: KNX), Truist Financial (NYSE: TFC), Associated Banc-Corp (NYSE: ASB), Union Pacific (NYSE: UNP), Snap-On (NYSE: SNA).
Notable IPOs Today: Eaton Vance Intermediate Municipal Income ETF (NYSE: EVIM), Eaton Vance Ultra-Short Income ETF (NYSE: EVSB), Eaton Vance High Yield ETF (NYSE; EVHY), Parametric Equity Premium Income ETF (NYSE: PAPI), Parametric Hedged Equity ETF (NYSE: PHEQ), Northann Corp. (NYSE American: NCL), Urgent.ly Inc. Common Stock (Nasdaq: ULY), WEBUY GLOBAL LTD. Ordinary Shares (Nasdaq: WBUY).
Notable Equity Crowdfunding Campaigns Ending Today: BeONE Sports (Netcapital), Avadain (Netcapital), Phantom Warrior Brewing Company (Honeycomb).
Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), Philadelphia Fed Manufacturing Index (8:30 a.m. ET), Philly Fed Employment (8:30 a.m. ET), Existing Home Sales (10:00 a.m. ET), Fed Chair Powell Speaks (12:00 p.m. ET).
Tesla’s Declining Net Income
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Shares of Tesla (Nasdaq: TSLA) dropped by 4.24% in after-hours trading on Wednesday after the electric vehicle company posted disappointing financial earnings results.
Financials: Tesla reported earnings of 66 cents per share in the past quarter and revenue of $23.4 billion; both were below estimates.
Details: The gross profit decreased by 22% in the quarter. Net income is down 44%.
Also: Financial problems aside, Tesla still expects that deliveries for the cybertruck will begin at the end of November.
Final Thoughts: Tesla, up 124% this year, had a bad quarter. But, the company hopes to increase volumes and have better margins in the current quarter.
Costco CEO to Leave Company
Craig Jelinek will step down as CEO of Costco (Nasdaq: COST) on January 1, with COO Ron Vachris replacing him, the company announced Wednesday.
Final Thoughts: Costco is up 26% in 2023. The stock is also up 600% since Jelinek became CEO in 2012.
Trends to Watch
A Timely Reminder: Spot Bitcoin ETF Approval Might Be Near, but Analysts Differ on Possible BTC Price Reaction (CoinDesk)
More Bullish Outlook: Bitcoin ETF Could Boost Crypto Market by $1 Trillion, Analysts Say (Decrypt)
Excessive: Pfizer Prices Covid Drug Paxlovid at $1,400 for a Five-Day Course (Wall Street Journal)
This is SportsCenter: How Profitable Is ESPN? Disney Breaks Out Figures for First Time (The Hollywood Reporter)
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