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Netflix misses earnings expectations

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Miguel A. Rodriguez
Miguel A. Rodriguez
21 July 2021
One of the world’s largest subscription-based streaming services posted mixed Q2 2021 earnings

Netflix reported earnings that missed on the bottom line but with a slightly higher-than-expected revenue. According to data from Refinitv, the company reported an EPS of $2.97 vs $3.16 expected. At the same time, revenues came in at $7.34 billion, topping the $7.32 billion touted, adding 1.54 million paid net subscribers on a global level. The market was looking for 1.19 million additions but finished the quarter with over 209 million paid memberships.

For the third quarter, Netflix is looking for 3.5 million net adds, lower than the 5.46 million anticipated by analysts. The optimism comes from Netflix’s new slate of content, as much of it has been pushed back into the second half of 2021 and next year. Moreover, the company confirmed the rumors to push into the gaming space, adding it as a new content category. Potential games will be included on Netflix subscriptions at no additional cost.

Following the news, Netflix stock price was up almost 1%.

 

Sources: cnbc.com, finance.yahoo.com

This information/research prepared by Andreas Thalassinos does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.