Netflix Blowout After Hours

Nasdaq looking like late 2021

With the Nasdaq getting hammered today, many traders will welcome the Netflix earnings which saw the stock jump over 12% thus far in after hours trading:

Here are the Netflix Earnings highlights from Zerohedge:

• EPS $3.73, beating estimates of $3.49, and above the $3.10 a year ago

• Revenue $8.54 billion, +7.8% y/y, just barely beating estimates of $8.53 billion

• Streaming paid net change +8.76 million vs. 2.41 million y/y, smashing estimates of +6.20 million

• Streaming paid memberships 247.15  million, +11% y/y, beating estimate 244.41 million

• Operating margin 22.4% vs. 19.3% y/y, beating estimate 22.1%

• Operating income $1.92 billion, +25% y/y, beating estimate $1.9 billion

• Free cash flow $1.89 billion vs. $472 million y/y, beating estimate $1.27 billion

They also plan on increasing pricing by 20%! Hmm so that whole cutting the cord thing and dumping cable, well seems like we are just going back to the same model.

As far as Tesla well they didn’t fare as well as gross margins were down 7% YoY and Musk was not in an upbeat mood when it came to the Cybertruck noting challenges in production, so after hours the stock is down 5%:

In other news and sorry we didn’t sound the alarm on this one yesterday, but Lululemon posted a big jump as it was announced their inclusion into the SP500. We view this as a gift to reshort as we do not expect this pig to continue to perform: