Netflix beat the forecasts in terms of the number of new users large. The company’s self-produced TV series helped attract 8.5 million subscribers compared to the expected 6.1 million.
The power giant was first out among the so-called Faang companies on Wall Street during the reporting season for the pandemic year 2020.
Although analysts had expected a sharp rise in the number of new users given the strong TV viewing trend during the pandemic, the quarterly report surpassed expectations. “Bridgerton” and “The Queen’s Gambit” are two self-produced series that attracted large audiences during the fourth quarter.
Netflix gained 8.5 million new subscribers compared to the expected 6.1 million. This compares with 2.2 million in the previous quarter. Thus, for the first time, it has over 200 million users worldwide.
Prior to the financial statements, Netflix has lost 8 percent of its market capitalization since the turn of the year. When the report was released, the stock soared 12 percent in aftermarket trading on the New York Stock Exchange.
Revenue rose by just over 21 percent to $ 6.64 billion, which was in line with a compilation made by Refinitiv. Earnings per share landed at $ 1:19, well below the $ 1:39 forecast.
In a letter to shareholders, the company wrote on Tuesday that it sees how other services such as Disney, Warnermedia and Discovery are challenging the industry in new ways.
“This is partly why we have moved so fast to grow and strengthen our original material across a wide range of genres and countries,” Netflix wrote in the letter.
Start shot in reporting season
The report is the start of a series of heavy interim reports from companies on the technology-heavy Nasdaq stock exchange.
Netflix, along with competitors such as HBO and Disney, were the clear winners at the beginning of the covid-19 pandemic, when shutdowns and other restrictions made more people stay at home and zap between TV series and movies on the TV couch. And overall, 2020 was a fantastic journey for Netflix shareholders, with a price increase of 67 percent for the full year.
But the tailwind has slowed down during the latter part of last year and 2021 has begun with a price decline of 8 percent since the turn of the year.
Assessors fear that Netflix’s customer growth is slowing down, as a result of the company’s price increases and increased competition.
Safest Faang shares
The decline also follows a period of media speculation about a technology bubble on Wall Street, where Netflix and the other so-called Faang companies have been the driving force. Faang is a collective name for the companies Facebook, Amazon, Apple, Netflix and Alphabet (which owns Google and Youtube).
Among analysts, online retailer Amazon and electronics giant Apple are currently described as the safest Faang shares. They are believed to be in the best position to maintain their strong positions in their market segments, and some expect Apple to have a market capitalization of a whopping $ 3,000 billion within reach this year.
In kronor terms, it will be a breathtaking 25,200 billion, which is five times as much as Sweden’s entire GDP in 2019.
But for Facebook and Google, the clouds of unrest have thickened recently. Analysts warn that advertising revenue could be difficult to raise. At the same time, the violent Donald Trump supporters’ attack on the Congress in Washington on January 6 has breathed life into the debate about the need for stricter regulation of social networks – both in the US and the EU.
Facts: Here are the dates for the heaviest technology reports
January 19: Netflix
January 22: Intel
January 26: Microsoft
27 januari: Apple, Facebook, Tesla
2 februari: Alphabet (Google, Youtube)
February 3: Spotify, Ebay, Paypal
February 9: Twitter
Source: Nyteknik – Senaste nytt by www.nyteknik.se.
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