Wednesday’s Headlines: Netflix's Numbers Kill Estimates

Wednesday’s Headlines: Netflix's Numbers Kill Estimates

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

Trupanion (TRUP) +10.2%

LoveSac (LOVE) +5.6%

Baozun (BZUN) +4.3%

Pinterest (PINS) +3.7%

Nautilus (NLS) +3.1%

Moving Down ⬇️

Ulta Beauty (ULTA) -10.6%

Cloudflare (NET) -4.4%

Upstart Holdings (UPST) -4.2%

Ericsson (ERIC) -3.8%

Evolent Health (EVH) -3.6%

1. Riding the ‘Squid Game’ wave, Netflix (NFLX) posted a solid earnings beat last night. Proving to shareholders that it can still attract new subscribers, the streaming service brought in an additional 4.4 million paid users in the quarter, topping Wall Street’s estimates. On the financial side, Netflix posted adjusted earnings per share (EPS) of $3.19, up from the $1.74 it reported in the year-ago quarter, on sales of $7.5 billion, up 16% year-over-year. Adding to bullish sentiment, the California-based company stated: “We have so much content coming in Q4 like we’ve never had, so we’ll have to feel our way through and it rolls into a great next year also.” Read the full press release here.

2. Facebook’s (NASDAQ: FB) getting a new name. CEO Mark Zuckerberg wants to rebrand, moving public perception from a social media company to a metaverse business, with the new name to be announced by October 28 at its annual Connect conference. This move intends to create 10,000 new jobs in the next five years for Europeans building out the metaverse. Some investors are skeptical as Facebook invests billions into the metaverse with no guarantee of a return any time soon, however. It’s definitely a concern as the advertising and messaging business has been immensely profitable to date, but amid scandal and regulatory pressure, new lines of business could provide new growth opportunities for the tech giant. Check out the full story here

3. Despite its declining market share in China, Ericsson (ERIC) posted an impressive earnings beat last night. Earnings from operations outperformed expectations at 8.8 billion Swedish crowns ($1.02 billion), while EPS of $1.73 was up 7% from the $1.61 it reported in the year-ago quarter. A boost in 5G product sales, as well as major contracts with all three major U.S. telecom firms, helped negate its losses in China, with CEO and President Börje Ekholm stating that “We continue to win footprint across our business by leveraging our competitive 5G portfolio.” Read more here.


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