💥 Netflix smashed through its own projections

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Today's big stories

Netflix announced results that far surpassed expectations
Discover the one ETF making bank in this bear market – Read Now
Manufacturing giant Foxconn announced plans to make a dent in the EV market

We’re Watching Now, Netflix

What’s Going On Here?

Netflix reported much better-than-expected results late on Tuesday.

What Does This Mean?

Netflix has announced a falling subscriber count for two straight quarters this year, so the odds were stacked against it coming into this earnings season. But it managed to prove everyone wrong: the streaming giant said projects including “The Gray Man” and “Purple Hearts” were real needle-movers last quarter. That helped it add over 2.4 million subscribers last quarter, smashing through its own projection of one million, and in turn pushing its revenue and profit to both tidily beat analysts’ expectations. And since Netflix predicted even more growth this quarter, the news was good enough to convince investors to brush off the company’s worse-than-expected profit outlook: they sent its shares up 14% after the news.

Why Should I Care?

The bigger picture: Start-stop entertainment.
Netflix will want to keep that subscriber growth going, which might be why it’s decided that downgrading the user experience may be just the way to go. The streaming giant’s bringing forward the launch of its ad-supported service to next month, in hopes that its lower-cost $6.99 version – which slots about five minutes of commercials into every hour of content – will appeal to bargain-hunting entertainment-seekers who can’t get the same low price from rivals Disney+ or HBO Max. All that cash from advertisers would be a nice bonus too: some analysts predict that could make Netflix around $3 billion in extra revenue by 2025.

Zooming out: Netflix won’t share.
Determined to put an end to the bonding experience of sharing your Netflix password with a special someone, the streaming giant revealed the new “Profile Transfer” feature this week. Netflix would have you believe it’s designed to make big moves and break ups easier by switching your history and recommendations to a new account, but it’s probably a simple bid to clamp down on the more than 100 million households that access the service using shared accounts.

You might also like: Have Netflix’s recent results made it a buy?

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Analyst Take

Why This ETF Is Having A Stellar Year

By Russell Burns, Analyst

With literally thousands to choose from, deciding which exchange-traded fund (ETF) to invest in can be a bit like choosing just one cake from the whole bakery: overwhelming.

But this one stands out: the iMGP DBi Managed Futures Strategy ETF has gained an eye-watering 33% this year, even with stocks and bonds both struggling.

It’s been mimicking the returns of the major momentum-following hedge funds – but without the big fees they charge.

That’s today’s Insight: how this high-performing ETF could improve the look of your portfolio.

Read or listen to the Insight here

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Disclaimer

Level 2 data is free to moomoo users that have an approved brokerage account with Moomoo Financial Inc. Images provided are not current and any securities are shown for illustrative purposes only. Terms and Conditions apply; please visit https://www.moomoo.com/support/topic490 for details. $2,000 value is based on the market price at the time of the gift. Investing involves risk and the potential to lose principal. Trading during Extended Hours Trading Sessions carries unique risks, such as greater price volatility, lower liquidity, wider bid/ask spreads, and less market visibility, and may not be appropriate for all investors. Moomoo is a financial information and trading app offered by Moomoo Techonologies Inc. In the U.S., investment products and services on Moomoo are offered by Moomoo Financial Inc., Member FINRA/SIPC. Any illustrations, scenarios, or specific securities referenced herein are strictly for illustrative purposes. Past investment performance does not guarantee future results. Investing involves risk and the potential to lose principal.