almost 4 years ago • 2 mins
Netflix announced a better-than-expected first-quarter update late on Tuesday, but stopped short of admitting Carole Baskin definitely did it 🐯
The streaming giant’s quarterly revenue was 28% higher than the same time last year. That’s roughly what investors were expecting, but it would’ve been higher if the strong US dollar hadn’t dragged down international earnings. The company’s success was down to the 16 million subscribers it added globally – 9 million more than it promised it would deliver. It seems that between pandemic-induced lockdowns and Blockbuster hits like Tiger King – which attracted 34 million viewers in 10 days – viewers were only too happy to switch on to switch off 📺
As for this quarter, the streaming giant plans to add another 7.5 million subscribers – almost double the 4.4 million investors predicted. Clearly, it’s hoping its newfound momentum will continue…
Netflix’s stock initially rose 5% after the update, possibly because of a growth estimate that – given the ongoing measures – may yet prove conservative. Goldman Sachs, for one, predicted that 8 million new subscribers this quarter seemed likely (though the bank hadn’t counted on just how successful last quarter would be) 🤔 Then again, Netflix might now have harvested all the subscribers who were ripe for the picking, and could have a harder time winning over new customers – especially since Disney+ already has an estimated 50 million subscribers to Netflix’s 183 million.
US tech stocks have generally had a good year: Netflix’s stock had risen by 35% before Tuesday, Amazon’s by 30%, and Microsoft’s by 11%. That makes sense, seeing as analysts have identified those as winners (relatively speaking) from coronavirus. But even shares of the ones that might lose out haven’t done too badly: Alphabet’s stock has “only” fallen by 5%, and Facebook’s by 12% – the same amount as the overall American stock market.
Disclaimer: These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment advisor.