Netflix Meets Earnings Expectations and Continues to Grow Subscription Base
Netflix reported earnings after the bell and hit on expectations. The company reported EPS of $0.41 and revenue of $3.286 billion. The streaming service did add far more customers than expected during the holiday season. Netflix gained 8.3 million subscribers globally, making Q4 a particularly strong quarter.
After the strong investor relations report, shares jumped more than 8% after hours. For the first time, Netflix's market capitalization passed $100 billion.
According to Daniel Ives, the Chief Strategy Officer and Head of Technology Research at GBH Insights, the media world is Netflix's oyster. The streaming company's biggest competition at this point is Hulu. However, Ives feels strongly about the potential future growth for Netflix heading further into 2018.
Netflix made other announcements during their earnings report. The company plans to raise capital in the high yield market. They also intend to grow their technology and development investments to over $1.3 billion. Netflix will spend between $1.7 and $8 billion on content in 2018.
Markets soared in May after Nvidia’s Q1 success, but concerns over slowing consumer spending, especially among middle—and lower-income groups, loom large.
The U.S. economy added 272,000 jobs in May, far more than expected. But that number doesn't tell the whole story. Interest rate cuts could still be on the way.
The AI boom is heating up worldwide competition, the NBA is cashing in, and short-selling is (surprise!) risky. Plus, who are this week's Usual Suspects?
