Netflix shares fall as weak dollar-driven forecast fails to impress
Expectations were running high for the streaming giant, after its shares nearly doubled in value in the past year and viewers binged on content such as the final season of South Korean survival drama "Squid Game" in the second quarter.
But executives said much of the increase in the annual forecast was driven by weakness in the U.S. dollar, now predicting revenue of between $44.8 billion and $45.2 billion, up from $43.5 billion to $44.5 billion previously.
"When your shares are already binge-watched to perfection, the earnings beat needed to be stronger to satisfy expectations," said Michael Ashley Schulman, chief investment officer at Running Point Capital Advisors.
"Instead, some sold on the good news and maybe questioned whether the positive FX effect will be there a few quarters down the road."
A crackdown on password-sharing, more sports content and its ad-supported tier helped Netflix draw tens of millions of new viewers in 2024. But the company stopped reporting subscriber numbers earlier this year, shifting focus to metrics like revenue and profit, a move that has raised concerns about growth.
The streaming giant, whose $517-billion market value is more than the combined worth of Disney, Comcast and Warner Bros Discovery, posted quarterly earnings per share of $7.19, beating estimates of $7.08, according to data compiled by LSEG.
"A strong content slate in the second half of the year and growing traction for its advertising efforts could help support continued revenue gains in the third quarter and beyond," said Seth Shafer, principal analyst at S&P Global Market Intelligence Kagan.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Times
3 hours ago
- Business Times
New board appointments announced for Singapore Land Authority; Yeoh Oon Jin steps down
[SINGAPORE] The Ministry of Law (MinLaw) on Monday (Jul 28) announced the latest board appointment changes at the Singapore Land Authority (SLA). Former executive chairman of PwC Singapore Yeoh Oon Jin will be stepping down as chairman of the SLA board on Jul 31. In his role, Yeoh pushed for the adaptive reuse of state properties for more social and community uses. This included the rejuvenation of heritage buildings into vibrant community and lifestyle clusters, such as the former St Andrew's Mission Hospital. He served on the board since Aug 1, 2016. He played a key role in developing the Digital Conveyancing Portal, which aims to transform the current manual, paper-based conveyancing process into an efficient, streamlined digitalised process. It is expected to be fully completed in 2026. Under Yeoh's guidance, SLA was elected co-chair of the United Nations Committee of Experts on Global Geospatial Information Management, and implemented a refreshed National Geospatial Masterplan to drive a geo-enabled Singapore. His replacement is Loh Lik Peng, founder and director of Unlisted Collection, who will be appointed as chairman on Aug 1. Loh has been on the SLA board since Aug 1, 2017, and was appointed as deputy chairman on Aug 1, 2020. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up He is also currently the chairman of Shatec Institutes, the Singapore Arts School, Singapore Cruise Centre and National Museum of Singapore. Loh is a board member of the National Heritage Board. Jerry Koh, managing partner at Singapore law firm Allen and Gledhill, will be appointed as deputy chairman of the SLA board on Aug 1. He has been a member of the board since Aug 1, 2020. Additionally, two new members will be appointed to the SLA board for a term of two years. They are Boo Junfeng, director and writer at Peanut Pictures, and Rafiq Bin Mohamad, founder and creative and branding director at Feral. Meanwhile, the six board members who will be reappointed for a term of two years are: Jaelle Ang, chief executive and co-founder of The Great Room; Angelene Chan, executive chairman of DP Architects; Cheung Pui Yuen, chief risk officer of Deloitte South-east Asia; Chong Siak Ching, former chief executive of National Gallery Singapore; Lien Choong Luen, general manager of Gojek Singapore; and Melvyn Yeo, founder and managing partner of Trirec. Angeline Poh, chief customer and corporate development officer at Mediacorp, will complete her current term of office on Jul 31 and will not be reappointed as an SLA board member. Existing SLA board members such as Calvin Phua, chief executive of SLA; Colin Chow, deputy secretary (policy) at the Ministry of Law; and Kenny Tan, deputy secretary (workforce) at the Ministry of Manpower will continue serving on the board.
CNA
3 hours ago
- CNA
CNA938 Rewind - Stock take today: EU-US preliminary deal, US week ahead
On the daily markets analysis on Open For Business, Andrea Heng and Susan Ng speak with Heng Koon How, Head of Markets Strategy, Global Economics and Markets Research, UOB.
CNA
6 hours ago
- CNA
Musk says Tesla, Samsung Electronics sign chip supply deal
SEOUL :Tesla CEO Elon Musk said on Monday that the U.S. automaker has signed a deal to source chips from Samsung Electronics, a move expected to bolster the South Korean tech giant's loss-making contract manufacturing business. On Saturday, Samsung announced a $16.5 billion chip supply deal with a major global company, without naming the client. It said the customer had requested confidentiality about the details of the deal, which will run through the end of 2033. Three sources briefed about the matter told Reuters that Tesla was the customer for the deal. The deal comes as Samsung faces mounting pressure in the race to produce artificial intelligence chips, where it trails rivals such as TSMC and SK Hynix. This lag has weighed heavily on its profits and share price. Samsung, the world's top memory chip maker, also makes logic chips designed by customers through its foundry business. Pak Yuak, an analyst at Kiwoom Securities, said the latest deal would help reduce losses at Samsung's foundry business, which he estimated exceeded 5 trillion won ($3.63 billion) in the first half of the year. Analysts say Samsung has struggled with the defection of key clients to TSMC for advanced chips. TSMC counts Apple, Nvidia and Qualcomm among its customers. The Samsung-Tesla deal is also significant for South Korea, which is seeking U.S. partnerships in chips and shipbuilding amid last-ditch efforts to reach a trade deal to eliminate or reduce potential 25 per cent U.S. tariffs. It is not clear how the order would affect Samsung's plan to start production at its new factory in Texas, which has been delayed as it struggles to win major customers. Samsung is grappling to boost production yields of its latest 2-nanometer technology, and the order is unlikely to involve the cutting-edge tech, Lee Min-hee, an analyst at BNK Investment & Securities, said. Samsung has been losing market share to TSMC in contract manufacturing, underscoring technological challenges the firm faces in mastering advanced chip manufacturing to attract clients like Apple and Nvidia, analysts said.
