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Successful Q4 2021 for Netflix

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Miguel A. Rodriguez
Miguel A. Rodriguez
27 January 2022
The streamer posted earnings that beat analysts’ estimates

Netflix reported Q4 2021 earnings per share of $1.33, crushing the consensus estimates of 82 cents. Revenue came in line with the $7.71 billion forecasted. In the fourth quarter, Netflix added 8.28 million globally paid net subscribers, fewer than the 8.5 million subscribers reported during 2020.

Concerning the latest figures, Netflix acknowledged that increased competition from other companies was one reason for the slowdown. “Consumers have always had many choices when it comes to their entertainment time - a competition that has only intensified over the last 24 months as entertainment companies all around the world develop their own streaming offering,” the company’s officials stated.

The quarterly figures came after the company had announced prices increases in the US and Canada. In the US, the cost for the basic plan stands at $9.99, while the standard and premium are $15.49, and $19.99, respectively. Moreover, it started tapping into the gaming world. Netflix has been releasing games based on popular titles to subscribers.

For Q1 2022, the company expects to add 2.5 million subscribers. It also plans for weighted back-end content, with big premieres set for March.

The market didn’t react positively to the news, Netflix stock trading 19.4% lower in pre-market to levels unseen since June 2020.

Sources: cnbc.com, finance.yahoo.com, thestreet.com

This information/research prepared by Miguel A. Rodriguez 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.