Netflix Loses and Still Wins

Today is Wednesday, July 20, 2022.

New to this newsletter? Sign up here.

Netflix Loses and Still Wins

Shares of Netflix (Nasdaq: NFLX) jumped 7.85% in after-hours trading on Tuesday after the streaming giant posted mixed financial earnings.

Financials: Netflix reported earnings per share of $3.20, which was better than expected. But the company’s revenue of $7.97 billion was below estimates.

Subscribers: The company lost about 1 million subscribers in the quarter, which was good news because Netflix was expected to lose 1.8 million in the quarter.

Currency Problems: With 60% of the revenue coming from international markets, the company sees currency issues as a “significant headwind” for the third quarter. Netflix suffered a $339 million foreign currency impact in the second quarter.

Layoffs: Netflix revealed that it accumulated about $70 million in severance costs in the quarter.

Advertising: In an update regarding Netflix’s new ad-supported subscription plan, the company is testing it out in a handful of markets and it will likely evolve over time.

Password Sharing: Netflix also wants to cut down on password sharing. The company said it is currently testing two different strategies in Latin America aimed at reducing password sharing.

Big Picture: Investors were so happy with Netflix’s results that other streaming stocks ticked up late Tuesday as well. Walt Disney (NYSE: DIS) jumped 2.10% and Warner Bros Discovery (Nasdaq: WBD) went up 1.75%.

Final Thoughts: Shares of Netflix are down 66% this year. Could the stock truly rebound in a post-pandemic world?


Notable Earnings Today: ASML Holding (Nasdaq: ASML), Tesla (Nasdaq: TSLA), Abbott Laboratories (NYSE: ABT), United Airlines Holdings (Nasdaq: UAL), Nasdaq (Nasdaq: NDAQ), Alcoa (NYSE: AA), Baker Hughes (Nasdaq: BKR), CSX (Nasdaq: CSX), M&T Bank (NYSE: MTB), Kinder Morgan (NYSE: KMI), Comerica (NYSE: CMA), Steel Dynamics (Nasdaq: STLD), Lithia & Driveway (NYSE: LAD), Crown Castle International (NYSE: CCI), Knight-Swift Transportation Holdings (NYSE: KNX), Northern Trust (Nasdaq: NTRS), Crown Holdings (NYSE: CCK), Badger Meter (NYSE: BMI), Discover Financial Services (NYSE: DFS), Biogen (Nasdaq: BIIB), PacWest Bancorp (Nasdaq: PACW).

Notable IPOs Today: FTAI Infrastructure Inc. Common Stock When Issued (Nasdaq: FIPWV).

Notable Equity Crowdfunding Campaigns Ending Today: N/A.

Notable Economic Events Today: Existing Home Sales (10:00 a.m. ET), Crude Oil Inventories (10:30 a.m. ET).

Interactive Brokers Hit By Lower Trading

Photo by Tech Daily / Unsplash

Shares of Interactive Brokers Group (Nasdaq: IBKR) fell 1.85% in after-hours trading on Tuesday after the brokerage firm posted negative financial earnings.

Financials: Interactive Brokers reported earnings per share of 84 cents and revenue of $656 million; both were below estimates.

Problems: Total daily trade revenue decreased 6% in the quarter. The company also suffered a $158 million currency hit.

Final Thoughts: Shares of Interactive Brokers are down 26% in 2022.

Equity Crowdfunding Spotlight: Fluent Forever

Briefly describe your business. Fluent Forever is an app/tutoring platform that teaches you a language to fluency in 6 months, using content from your own life.

What are the terms of the investment for your campaign? We're raising on a $35M cap SAFE. See Republic for more details.

What makes your startup special? Why will it succeed? Our founder literally wrote the book on language learning – the only bestseller on the topic in history – and our products are designed to fully personalize themselves to each and every user, so as to truly generate fluency in a short amount of time.

Trends to Watch

An Important Question: Is the Ethereum ‘Merge’ Driving This Rally? (CoinDesk)

Thank you for reading!

Forward to a friend and tell them to sign up here.

Want more investing tips? Listen to the podcast.

Questions or comments? Hit reply to reach out.