Netflix misses earnings expectations

By: Miguel A. Rodriguez

12:57, 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%.



Share this article

The information presented herein is prepared by and does not intend to constitute Investment Advice. The information herein is provided as a general marketing communication for information purposes only and as such it has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is not subject to any prohibition on dealing ahead of the dissemination of investment research.                                                                                                                            Users/readers should not rely solely on the information presented herewith and should do their own research/analysis by also reading the actual underlying research. The content herewith is generic and does not take into consideration individual personal circumstances, investment experience, or current financial situation.Therefore, Key Way Investments Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the information presented herein. Past performance and forecasts are not reliable indicators of future results.