Here’s Why Netflix is Running After Hours

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Shares of Netflix are exploding after hours.

In fact, the stock is up 9.3%, or $26.63 a share at the moment.  While it missed on domestic paid subscriber forecasts and revenue, it did beat on earnings.

EPS came in at $1.47, as compared to expectations for $1.04.  Revenue of $5.24 billion was only slightly below forecasts for $5.25 billion.  Domestic paid subscriber came in at 517,000, as compared to expectations for an addition of 802,000.  However, international paid subscriber counts jumped to 6.26 million, as compared to 6.05 million-estimates.

For the fourth quarter the company expects EPS of 51 cents a share on revenue of $5.4 billion.

And in a letter to shareholders, Netflix addressed the issue of streaming services, noting such services will be “noisy” and could generate “modest headwinds,” near-term, as noted by CNBC.

“Many are focused on the ‘streaming wars,’ but we’ve been competing with streamers (Amazon, YouTube, Hulu) as well as linear TV for over a decade,” the company said, as quoted by CNBC. “The upcoming arrival of services like Disney+, Apple TV+, HBO Max, and Peacock is increased competition, but we are all small compared to linear TV. While the new competitors have some great titles (especially catalog titles), none have the variety, diversity and quality of new original programming that we are producing around the world.”

Overall, earnings were not as bad as many had feared.

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