Nasdaq: Netflix shares jump as added subscribers top forecasts
Netflix shares jumped in extended trading yesterday to set a fresh nine-month high, despite posting a big miss on earnings, as investors reacted positively to better-than-expected subscriber additions.
(Video Transcript)
Netflix earnings
It's been a volatile 24 hours for Netflix shares coming off the back of earnings that provided a little bit of something for everyone.
That's because the bears got something, where we saw essentially underperformance in terms of earnings, earnings per share (EPS) coming in at 12 cents per share versus 59 cents expected, while revenues were broadly in line at $7.85 billion.
However, we saw significant upside in the stock and that's because the focus was on subscriber numbers. They added 7.66 million subscribers in the fourth quarter (Q4) against Wall Street forecasts of 4.57 million. So significant outperformance.
CEO steps down
Another major thing to note is we did see the co-founder, Reed Hastings stepping down as chief executive, handing the reins to co-CEO Ted Sarandos and chief operating officer, Greg Peters.
But despite the games that we've seen yesterday, we've started to see things turn around a little bit here, notably on the weekly timeframe, rallied into this 76.4 Fibonacci at 34131. And then as we see here on the daily time frame, the opening of the all-sessions move for this market has seen it coming off somewhat.
So as things stand respecting that 76.4 Fibonacci level, so could we see a bit of a pullback as people start to focus away from those subscriber numbers and instead on the underperformance, on the earnings figures?
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.