Netflix

The catalyst? A word of caution from the company’s CFO, Spencer Neumann, delivered at a Bank of America Conference. Netflix shares plummeted, diving by over 5% during the afternoon trading, and shaping up to become the third-worst session endured by the streaming giant in 2023. Neumann’s revelation about the company’s expected profit margins was at the center of the storm. He offered a subdued forecast for operating margins, pegging them in the range of 18% to 20%, a far cry from the prevailing consensus, which stood firm at 22.1%. In an attempt to cushion the blow, he also stressed that Netflix is “nowhere near” its peak margins.

Netflix Inc CFO Says Company Is ‘Nowhere Near’ Peak Margins.

Netflix Inc CFO Says Connected-TV Market Is An Area Of Future Growth.

Netflix CFO Says Advertising, A Future Growth Of Average Revenue Per Member, Is ‘Not That Material Yet’.

Netflix Inc CFO Says ‘It’s Not Easy To Build An Ad Business From Scratch’.

Netflix CFO Says 90% Of Growth Is Outside Of U.S., Impacting Average Revenue Per User.

Netflix Inc CFO Says Spin Off Accounts Skewing Towards Ad-Free With Healthy Proportion Going To Ad Tier.

Netflix (NASDAQ:NFLX) reported Q2 earnings  of $3.29 per diluted share, up from $3.20 a year earlier. Analysts polled by Capital IQ expected $2.85 per share. Revenue for the quarter ended June 30 was $8.18 billion, up from $7.97 billion a year earlier. Analysts surveyed by Capital IQ expected $8.29 billion. The streaming giant said its global paid net additions stood at 5.89 million in Q2. Analysts polled by Visible Alpha were expecting 2.3 million. Netflix said it expects Q3 EPS of $3.52 on revenue of $8.52 billion. Analysts polled by Capital IQ are looking for EPS of $3.19 and revenue of $8.68 billion.