Wednesday’s Headlines: Netflix Stock Plummets Overnight

Wednesday’s Headlines: Netflix Stock Plummets Overnight

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

Twilio (TWLO) +10.3%

Roku Inc. (ROKU) +8.2%

Stitch Fix (SFIX) +8.2%

The Trade Desk (TTD) +7.8% (BILL) +7.6%

Moving Down ⬇️

Twitter (TWTR) -4.7%

Diageo (DEO) -1.7%

Nautilus (NLS) -1.1%

Markel Corp (MKL) -0.5%

Duolingo (DUOL) -0.1%

1. Netflix (NFLX) stock got hammered in pre-market trading following a disastrous earnings call. The streaming giant is trading down roughly 25% following the revelation that it suffered its first subscriber loss in over a decade — 200,000 users. Echoing Meta’s infamous February post-earnings slide, Netflix sent its entire industry into a downturn with Spotify (SPOT), Roku (ROKU), and Disney (DIS) also falling. It’s not all bad news for the company though, with earnings per share (EPS) coming in at $3.53 against an estimated $2.89. Much of the negative metrics were attributed to the suspension of its service in Russia and the resulting loss of 700,000 subscribers. Blame was also put on an estimated 100 million households accessing the platform through account sharing. Netflix is now expected to crack down on this process, with plans also in place to tentatively explore lower-priced subscription tiers utilizing ads. Read more here.

2. Hasbro (HAS) announced its first-quarter 2022 earnings yesterday and posted a relatively mixed bag for shareholders. The toy maker posted EPS of $0.57 — narrowly missing analyst estimates of $0.61 — on revenue of $1.16 billion versus an expected $1.15 billion. These figures mark a 43% decline and a small 4% rise respectively. The chief reason behind these waning profits appears to be the ongoing Russian invasion of Ukraine, with the embargo on Russian sales causing an estimated hit of $100 million for the business. The company still predicts “low single-digit” revenue growth throughout the remainder of 2022, but warned that prices will be raised mid-year to combat ongoing supply chain issues. You can find out more details about the company’s earnings call here.

3. Real estate investment trust Prologis (PLD) reported its first-quarter 2022 earnings yesterday, resulting in a small boost of 4% for the firm’s stock. EPS came in at $1.54 against an estimate of $0.68, up from $0.49 in the year-ago quarter. The company also beat estimates for per-share funds from operations, posting $1.09 against $1.07, but missed on adjusted revenue, with $1.08 billion just missing the estimate of $1.09 billion. Chief Financial Officer Timothy Arndt offered a confident summation of the company’s outlook, stating that “our lease mark-to-market of 47 percent provides substantial embedded earnings growth for years to come even without any further increase in market rents.” He also went as far as declaring that “The long-term growth outlook for our business and balance sheet has never been stronger." You can read more here.

There is one company on the MyWallSt shortlist that will report earnings today:

Tesla (TSLA)

Pádraig BolgerPádraig Bolger

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