Wednesday’s Headlines: Netflix Has No Chill
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Pure Storage (PSTG) +8.6%
ShotSpotter (SSTI) +7.2%
Redfin (RDFN) +5.7%
Texas Roadhouse (TXRH) +5.7%
Moving Down ⬇️
Boston Beer Co. (SAM) -1.6%
Hain Celestial (HAIN) -1.0%
Ericsson (ERIC) -0.3%
Netflix (NFLX) -0.2%
1. While Netflix (NFLX) managed to beat revenue and global subscriber growth estimates, its earnings miss has worried investors. The ‘Stranger Things’ maker reported adjusted earnings of $2.97 per share, missing estimates of $3.16, on revenue of $7.3 billion, up 19% year-over-year (YoY). The boost in revenue can be attributed to it adding 1.54 million paid members in Q2, smashing Wall Street’s estimates of 1.19 million. Netflix also confirmed that it is pushing into the mobile gaming space by using its vast bank of intellectual property to create more engaging content. The streaming platform explained: “We know the fans of those stories want to go deeper, they want to engage further.” Read the full press release here.
2. As diners dash back into restaurants, Chipotle Mexican Grill (CMG) posted earnings results that topped Wall Street’s expectations and surpassed pre-pandemic levels. The burrito maker reported adjusted earnings of $7.46 per share on revenue of $1.9 billion, up 38.7% YoY. As lockdown restrictions are lifted, the company’s digital sales are now slowing but still jumped 10.5%, making up 48.5% of total sales, driven by the popularity of Chipotle’s digital-only quesadilla. Chipotle warned investors that it is expecting rising beef and freight costs to impact future revenue but promised that it will “take the appropriate actions as needed to help offset any lasting impacts.” See the entire press release here.
3. In Twitter’s (TWTR) never ending pursuit of sourcing new revenue streams, it is now testing a set of features for TweetDeck. According to Twitter Product Lead, Kayvon Beykpour, the new version of the Twitter client will offer a full tweet composer plus a fresh way to group columns into clean workspaces. The firm’s social media dashboard is aimed at Twitter’s power users, but rumors suggest that it might soon turn it into a new subscription service. A new paying service should boost profits, helping Twitter with its goal of doubling revenue by the end of 2023. A Twitter spokesperson stated: “With this test, we hope to gather feedback to explore what an enhanced version of TweetDeck could look like within Twitter’s subscription offerings later on.” More here.
There is 1 company on the MyWallSt shortlist that will report earnings today:
Get this week’s full earnings calendar here.