$NFLX got clipped 6–7% after hours, trading around $64. The quarter was fine — revenue $12.87B in line, EPS $0.87 vs $0.82 est (though they said the beat was mostly expense timing). The problem is guidance. Q4 EPS $0.67 vs $0.73 street, revenue growth slowest in almost three years, and they cut 2024 ad revenue target to ~$2.7B from ~$3B.
The business isn't broken. Churn improved, still growing double digits. But the stock was already down 40%+ YTD and there's no clear catalyst for reacceleration. I'm not buying this dip tonight. Want to see how it trades tomorrow and I'm also watching $TSLA and $META earnings Wednesday after close before I make any moves.
The business isn't broken. Churn improved, still growing double digits. But the stock was already down 40%+ YTD and there's no clear catalyst for reacceleration. I'm not buying this dip tonight. Want to see how it trades tomorrow and I'm also watching $TSLA and $META earnings Wednesday after close before I make any moves.