Netflix: earnings are weak, subscriber numbers are skyrocketing; The stock flew in late trading – global markets

The streaming giant Netflix

NETFLIX
+ 0.76%

closure:0

opening:501

Tall:509.25

low:493.54

cycle:–

Page Quote News Graphs Company Profile Recommendations


More articles on the subject:




Released after trading tonight its fourth report for 2020 and presented mixed results. Revenue was slightly above expectations, but bottom line earnings were lower than expected. Netflix ended daily trading with slight increases, but with the closing of trading and the publication of the report, the stock jumped more than 10% (as of this writing).

On the top line, Netflix brought in $ 6.64 billion compared to an early expectation of $ 6.62 billion. The company introduced an addition of 8.5 million new subscribers compared to expectations of just over 6 million sponsored by Corona. On the bottom line, the company’s earnings totaled 1.19 cents per dollar compared to market expectations of $ 1.39 per share. The company’s management said it was considering approving a share purchase plan.

In the report, the Netflix management notes that the addition of subscribers is lower than that added in previous quarters as a sign of a certain saturation and the approach to ending the effects of the plague. According to the report, the company’s growth will return to the previous pre-epidemic rate in the following quarters.

In terms of content, the company will release at least one new movie every week this year. Netflix turned positive cash flow earlier this year but explained that cash flow will decline in the next quarter in light of growth in original works. Overall, cash flow for 2020 was $ 1.9 billion compared to $ 3.3 billion in 2019.

This morning we wrote that on the one hand there are those who believe that Netflix has reached a certain ceiling in terms of its subscribers in light of the growing competition of the competitors’ streaming services, Disney Plus (NYSE: DIS) and Amazon Prime Video (NYSE: AMZN). However, others disagree. It could be argued that the video giant’s current report shows that there is still meat in the company’s pot at least until next quarter.