Netflix Revenue Growth Chilled

July 20, 2023

Today is Thursday, July 20, 2023.

The Early Bird Index today is 58.46.

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Netflix Revenue Growth Chilled

Mixed financial results caused shares of Netflix (Nasdaq: NFLX) to drop by 8.26% in after-hours trading on Wednesday.

Financials: Netflix reported earnings of $3.29 per share in the past quarter, which was better than expected. But revenue was below estimates at $8.18 billion.

Details: Paid net additions totaled 5.9 million in the quarter, which was better than expected. Netflix is rolling out its paid-sharing plan (AKA the company’s password-sharing crackdown) to all remaining markets.

Outlook: Netflix said that it expects revenue to accelerate in the second half through its paid-sharing plan and steady growth in its ad-supported plan. The company expects revenue to be $8.5 billion in the current quarter but that is lower than expected.

Stock Price: Netflix is up 61% so far in 2023, including a 9% increase in the last 30 days.

Final Thoughts: There are still questions about how Netflix will grow its paid-sharing business while dealing with slowing revenue.

Notables

Notable Earnings Today: Taiwan Semiconductor (NYSE: TSM), Intuitive Surgical (Nasdaq: ISRG), American Airlines (Nasdaq: AAL), Capital One Financial (NYSE: COF), Johnson & Johnson (NYSE: JNJ), CSX (Nasdaq: CSX), Nokia (NOK), PPG Industries (NYSE: PPG), Freeport-McMoRan (NYSE: FCX), W.R. Berkeley (NYSE: WRB), Blackstone (NYSE: BX), Bank OZK (Nasdaq: OZK), Abbott (NYSE: ABT), First Financial (Nasdaq: FFIN), D.R. Horton (NYSE: DHI), Amerant Bancorp (Nasdaq: AMTB), Philip Morris International (NYSE: PM), Associated Bank (ASB), KeyCorp (NYSE: KEYS), Knight-Swift Transportation (NYSE: KNX), Badger Meter (NYSE: BMI), Fifth Third (Nasdaq: FITB), Genuine Parts (NYSE: GPC), Marsh McLennan (NYSE: MMC), Newmont Goldcorp (NYSE: NEM), Pool (Nasdaq: POOL), SAP (NYSE: SAP), Snap-On (NYSE: SNA), Travelers (NYSE: TRV), Truist Financial (NYSE: TFC).

Notable IPOs Today: BioNexus Gene Lab Corp Common stock (Nasdaq: BGLC), Tidal Trust II (NYSE Arca: HF).

Notable Equity Crowdfunding Campaigns Ending Today: Geogreens (SMBX), Pray For Me (Title3Funds), Xairos (StartEngine), Allergenis (StartEngine), Timeplast (StartEngine), Balangay (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's Balance Sheet (4:30 p.m. ET).

Tesla’s Profit Disappoints

Photo by Michael Förtsch / Unsplash

Shares of Tesla (Nasdaq: TSLA) dropped 4.19% in after-hours trading after posting its financial earnings results.

Financials: Tesla reported earnings of 91 cents per share in the past quarter and revenue of $24.9 billion; both were better than expected.

Details: Despite recent price cuts, Tesla’s gross margin was better than expected at 18.2%. The problem is that its profit did not impress investors. Also, despite posting good delivery numbers, the company did not increase its guidance for future deliveries.

Stock Price: Tesla is up 169% in 2023, including a 6% jump in the last 30 days.

Final Thoughts: Investors are also concerned about the lack of Cybertruck production.

Discover Financial Pauses Stock Buyback

Discover Financial Services (NYSE: DFS) fell 13.01% in after-hours trading on Wednesday after the company reported disappointing financial earnings, disclosed an accounting error, and paused its stock buyback.

Final Thoughts: While the stock is up 25% this year, this news could derail growth.

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