Nevertheless, Netflix's double-digit turnover growth momentum for seven consecutive quarters is also reflected in the basic trend of its stock price. Netflix's share price has risen 134% since January 2024. During this period, the Standard & Poor 500 index rose 29%.
Over the next two quarters, Netflix also continued to have a wealth of events, performances and movies, such as the second series of Wednesday, the finale of Stranger Things, Happy Gilmore 2 and Gilmore del Toro's Frankenstein. (Reuters)But they stressed that although its operating profit rate in the second quarter was 34.1%, nearly 3 percentage points higher than the previous quarter and about 7 percentage points higher than the same period last year, "due to the amortization of the program content (content amortization is the accounting process that allocates the cost of obtaining or producing content such as movies, shows or music to its expected service life, and the increase in sales and marketing costs caused by the expansion of business scale in the second half of the year, the operating profit rate in the second half of 2025 will be lower than the first half of the year."
Netflix executives are also optimistic about the current third-quarter performance. They expect revenue this quarter to be $11.56 billion and earnings per share to be $6.87, higher than analysts’ expectations of $11.28 billion and earnings per share to be $6.69.
The average analyst forecast collected by market analysis company LSEG before is $11 billion and earnings per share is $7.08. Judging from these two performance up and down indicators, Netflix's quarterly performance exceeded expectations.
Based on this, Netflix is also updating its annual turnover forecast and expects its turnover to be between US$44.8 billion and US$45.2 billion, which is even better than the previous forecast of US$43.5 billion to US$44.5 billion.
Over the next two quarters, Netflix also continued to have a wealth of events, performances and movies, such as the second series of Wednesday, the finale of Stranger Things, Happy Gilmore 2 and Gilmore del Toro's Frankenstein.
The U.S. House of Representatives passed a bill overnight to establish a regulatory framework for cryptocurrency tokens pegged to the dollar (i.e., stablecoins). The bill has been submitted to U.S. President Trump, which is expected to sign the bill to make it law. This also allowed cryptocurrency-related stocks to rise sharply before the market trading tonight. At the time of press time, BitMine Immersion Technologies and GameSquare shares rose 15%; Upexi and BTCS shares rose 13%; Canaan rose 10%; Coinbase rose 2%; MARA Holdings and Riot Platforms also rose 1%. Lucid Group, a luxury electric car maker, lost 0.64% tonight, after soaring 36% overnight, and closed at $3.10. Lucid Group announced overnight that it will join forces with Uber Technologies and Nuro, an artificial intelligence company co-founded and led by former Waymo engineers, to establish a driverless technology partnership. The overnight gain was the biggest single-day percentage gain since Lucid Group shares rose 43% on January 27, 2023. Credit card company American Express will release its results later tonight. The stock price rose 1.60% before trading tonight, at $320.58. Next on Friday, we will take a look at the latest quarterly results of streaming giant Netflix Inc. The stock fell 1.66% before trading tonight, and was reported at $1,253.00. Pre-market active stocks are in sequence: Lucid Group, QuantumScape Corp, Plug Power, Nvidia and Sarepta Therapeutics. At the time of press time, the stock prices of these five active stocks rose and fell mixed.Perhaps for this reason, Netflix's stock price fell about 1% after its overnight after-market performance was announced.
Netflix Chief Financial Officer Spencer Neumann said: "The performance mainly reflects the exchange rate impact of the weakening of the US dollar compared to most other currencies. But the good news is that our basic business is also growing strongly. Our number of members is growing healthily and advertising sales are showing good momentum."
Driven by the final season of the global hit series Squid Game, streaming giant Netflix has increased its membership and advertising revenue, making its latest quarterly turnover and profit released after the overnight market both exceed market analysts' forecasts.
Although this is the second consecutive quarter of Netflix, it said: "The year-on-year increase in turnover is mainly due to the increase in membership, the increase in subscription prices and the increase in advertising revenue."
However, in a detailed analysis of performance, executives had to admit that the weakening of the dollar in the second quarter did help a lot. In the second quarter, 56% of Netflix's revenue came from regions outside North America. Therefore, when the US dollar weakens, Netflix's overseas revenue is denominated in strengthening currencies such as the euro, so when the weaker US dollar is reflected in the statement, it will naturally "increase" a lot..
Friday (July 18) Focus:According to Netflix's second-quarter performance report as of the end of June this year, the group's turnover increased by nearly 16% year-on-year to US$11 billion. The group's quarterly net profit was US$3.1 billion, or earnings per share, which was much higher than the US$2.1 billion, or US$4.88 in the same period last year.
Netflix Inc
Pre-market trading focus:
Major index futures in the Wall Street stock market in the United States rose on Friday (July 18). Wall Street investors are optimistic about the health of the U.S. economy, and recent corporate financial reports also show that companies can withstand the ever-changing tariffs and trade policies of U.S. President Trump.
At the time of 7:00, the Standard & Poor 500 futures rose slightly by 5.90 points or 0.09% to 6303.40 points; the Nasdaq 100 futures, dominated by technology stocks, started at 20.00 points or 0.09%, to 23,098.00 points; the heavyweight Dow Jones Index futures also rose by 38.90 points to 44,524.00 points.
Data released overnight (Thursday) showed that U.S. retail sales rebounded sharply in June, allowing investors to see a recovery in economic momentum and consumer confidence, driving the Standard & Poole 500 and Nasdaq to close at record highs overnight.
The Standard & Poor 500 index rose 33.66 points overnight to close at 6297.36 points. The Dow Jones Index rose 229.71 points and closed at 44484.49 points. The Nasdaq 100 index also rose 0.76% or 173.08 points, closing at 23,081.05 points.
(Nasdaq Stock Exchange: NFLX)