Netflix Hits 52-Week Low as Weak Q4 Guidance Overshadows Earnings Beat
NFLX is trading near its 52-week low of $65.08 (1.4% below the low) on elevated volume (2.0× avg).
Summary
Netflix beat on Q3 EPS ($0.87 vs $0.82) but revenue of $12.874B came in a hair under the $12.876B consensus, and the Q4 outlook is the problem: $13.442B revenue and $0.67 EPS versus $13.517B and $0.73 expected. Full-year revenue guidance was trimmed to $51.1B from the prior $51.0–$51.4B range. Shares are down 6.61% to $64.14 premarket, a new 52-week low and roughly half the $124.86 high. This lands on top of a rough stretch — the October layoffs of about 1,000 jobs (6% of staff), the CCO swap to Peter Rice effective Oct. 26, and the earlier guidance narrowing. The debate now is engagement and advertising growth, with Evercore's Mahaney and industry execs pointing to a shortage of hits as the root issue. Watch the Q4 print and the Thanksgiving Eve/Christmas Day NFL streams as the next real tests of whether live sports and Rice's programming can reaccelerate the story.
At the time of this announcement, NFLX was trading at $64.16 on NASDAQ in the Technology sector, with a market capitalization of approximately $286B. The 52-week trading range was $65.08 to $124.86. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Benzinga.