Latest news with #GeethaRanganathan
Bloomberg
2 days ago
- Business
- Bloomberg
Disney's Traditional TV Woes Overshadow Parks, Streaming Success
Bloomberg's Geetha Ranganathan breaks down Disney earnings and what ESPN's new NFL deal could signal about the media giant's future. (Source: Bloomberg)
Bloomberg
29-07-2025
- Business
- Bloomberg
Spotify Swings to a Second-Quarter Loss
- Spotify Technology SA swung to a loss in the second quarter, missing analysts' estimates after the music-streaming service recorded higher-than-expected expenses related to employee compensation. Earnings dropped to a loss of 42 euro cents per share, the company said in a statement Tuesday, missing analysts projections for a profit of €1.97. Revenue increased about 10% to €4.19 billion ($4.8 billion), compared with Wall Street estimates of €4.27 billion. The Stockholm-based company also gave a forecast for the current quarter that was weaker than analysts had expected. Spotify's shares tumbled as much as 11% to on Tuesday in New York to $626, the biggest intraday decline since April 4. The stock had gained 57% this year through Monday, boosted by efforts to reduce costs, which led the company to its first full year of profit in 2024. Bloomberg Geetha Ranganathan reports. (Source: Bloomberg)
Yahoo
19-07-2025
- Business
- Yahoo
Netflix Thrives as Estimates Topped, Forecast Raised
Netflix reported second-quarter results that exceeded investor expectations in every major metric. The company raised its forecast for full-year sales and profit margins, expecting to generate up to $45.2 billion in sales and an operating margin of 29.5%. Bloomberg Intelligence's Geetha Ranganathan has more on "Bloomberg The Close." Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
18-07-2025
- Business
- Yahoo
Netflix Q2 earnings are 'really solid' but not 'spectacular'
Netflix (NFLX) reported stronger-than-expected earnings and in-line revenue and raised its full-year outlook. Despite the earnings beat, Netflix stock slips lower. Bloomberg Intelligence senior media analyst Geetha Ranganathan joins Asking for a Trend to take a closer look at the earnings print and the stock reaction, as well as examine Netflix's dominant position in the streaming war and how it is leveraging artificial intelligence (AI). To watch more expert insights and analysis on the latest market action, check out more Asking for a Trend here. Well, Netflix reporting second quarter earnings just moments ago, those shares slipping a bit here in the after hours. Joining us for more analysis is Geetha Ranganathan, senior media analyst at Bloomberg Intelligence. Geetha, it's good to see you. So Netflix reports, we know Q2, Geetha, tends to typically be a seasonally weaker period. The stock is down about eight tenths of a percent here in the after hours, but give us your take, Geetha. What do you make of the print? It was a really solid print, Josh. I mean, everything that we were hoping to see, uh, Netflix definitely delivered in terms of their revenue growth for 2Q. Uh, they came in above guidance, above expectations, in terms of operating margin. Again, uh, outperforming expectations. Uh, the big thing, I think, that investors were really focused on was commentary for the rest of the year, and they delivered there as well. So they increased their outlook for revenue growth for the full year. It's up from 13% to 15%, uh, which is pretty good. Uh, and then again, with operating margin also, they kind of raised that, but I think investors were looking for a little bit more here. So it was originally, um, forecasted at 29% for the full year operating margin. They just took that up a smidge to 29.5. I think investors were looking somewhere in the range of 30 to 35, uh, 30 to 31%. Uh, so definitely solid, maybe not spectacular, and maybe that's why we're kind of seeing a little bit of this, uh, downward movement, uh, right now. And how much, Geetha, do you think it could also be, I'm just looking at the initial reaction here in the after hours, just the run this stock had. I mean, what a move into the print, Geetha, it was up, what, I I think 40% year to date. Absolutely right, Josh. Up 40% year to date, trading at something like almost 50 times earnings. So in many ways you would say that this was priced to perfection. When you have a stock like that that's priced to perfection, obviously investors are thinking what's next. And when you see a report that doesn't necessarily give you something screaming in terms of catalyst, I think that leads to a little bit of, you know, maybe angst. When you think about what's next, Geetha, let's talk about that content slate in the second half. I'm curious what you see there, and what what could that mean in terms of of user engagement? Yeah, user engagement is going to be super strong, Josh. There's absolutely no doubt about that. I mean, we've seen really strong results in the first half from a fairly decent content slate, but it's nowhere near what we're going to see in in the second half. Remember, management themselves have called the second half slate an embarrassment of riches. They have some of their biggest shows coming on board. You have Wednesday, you have the last season of Stranger Things, which is going to be broken into two parts. You have an NFL game, you have boxing matches. Uh, you know, you name it, you have Happy Gilmore, Knives Out, you know, everything, everything and anything. And you know, if you kind of just look at Netflix's history in terms of content release schedule, this is arguably their their strongest six month period ever. So there is no doubt that subscriber growth is going to be extremely strong, and we've seen that momentum kind of building. And content absolutely is king, and it's going to be a key differentiator for Netflix through the rest of 2025. And I know the street, Geetha, also cares a lot about content spend here. What do those trends look like looking ahead? Those trends actually look really, really strong as well. So remember, Netflix has guided already to spending only about $18 billion in content spend. Uh, that's pretty, that's a pretty modest increase. At the end of the day, Josh, what is happening in terms of content spend and in terms of the whole profitability equation is that you always want revenue growth to be higher than content spend growth. I mean, that's where the operating leverage in the model comes, and Netflix absolutely is demonstrating that. They are demonstrating sustained momentum in subscriber growth, they're demonstrating pricing power. And then yes, you do have content expenses going up, but not by some crazy amount. Uh, they're taking a very disciplined approach to all pieces of content, including sports, uh, which is really encouraging to see. So we know that margin is definitely on an upward trajectory here. How is the the competitive landscape evolving here, Geetha, for Netflix? You know, I I know in my house, the Lipton house, my six-year-old, you know, she's all about YouTube. So I'm just curious, how's the competitive environment, how's it evolving, Geetha, and Netflix's place in it? Yeah, that's a really, really good point that you bring up, Josh, because, you know, we've kind of seen Netflix dominate when it comes to streaming platforms. I think in many cases, many investors would say Netflix has already won the streaming wars, but then month after month you look at the Nielsen Gauge report where they basically track viewing time by all of these different platforms. There is absolutely no doubt that Netflix is far ahead of its competitors. So they have about an 8 to 9% share of viewing time. That's far ahead of Disney, which is at 4%, Amazon Prime, which is at 3%, but then you just brought it up, right, the elephant in the room, YouTube. YouTube actually leads with almost a 12 to 13% share. And Netflix addresses this as well. Netflix knows that YouTube is its biggest competitor, and one thing that we are kind of worried about when we take a look at the longer term strategy for Netflix and for all of these streaming platforms is as we see more and more AI in content creation and content production, can YouTube, can a platform like that actually gain an edge? Uh, and I think Netflix is very aware of this as well, and they're going to kind of see how to beef up their content platform using some of the AI tools. Final question, Geetha. You know, you think about Netflix, you just think about how much data they have at their disposal. I'm just curious, do we know if and how, Geetha, Netflix is leveraging AI here? Oh, they already, Josh, to that point, they just made a huge change in their content UI. Uh, they just revamped their whole user interface, and a lot of that is actually to feed the recommendation, the content recommendation engine, which we see. Uh, so, you know, they've tested this, you know, the way that they kind of frame it is, you know, when 50% of the population kind of comes in, they know to watch Netflix, they kind of know, they have in mind already a title that they want to watch, but 50% actually don't. And that's where the content recommendation engine can play such an important role, and we've already seen kind of machine learning guide this. And now they're using AI even more to kind of refine those, uh, the algorithm, and they're making it much more intuitive and much more easy to use. And so I think, you know, we've seen Netflix kind of always lead the game when it comes to product innovation, and they're going to continue to do that. I mean, an AI is definitely going to help them. Geetha, we are always so lucky to have you helping us break down these results. Thank you so much for joining us. Thank you, Josh. Thanks a lot. Related Videos Fed Rate Cut More Likely in Fourth Quarter, UBP's Nip Says Netflix Them Parks To Open Later This Year Record highs return, yields, ethereum: Market takeaways Disneyland Opens | On This Day Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
17-07-2025
- Business
- Bloomberg
Instant Reaction: Netflix Tops Estimates
While rival media companies are unloading assets and cutting costs, Netflix Inc. continues to thrive. The owner of the world's most popular paid streaming service on Thursday reported second-quarter results that exceeded investor expectations in every major metric, saying revenue grew to $11.1 billion and earnings jumped to $7.19 a share. The company also raised its forecast for full-year sales and profit margins. The second quarter is historically slow for Netflix, which typically adds more customers at the beginning and end of the year. But the company released a steady slate of popular shows, including two of the most-watched titles of the year — the third season of Ginny & Georgia and the final season of Squid Game. The company also benefited from a weaker dollar. More than two-thirds of its customers live outside the US. For instant reaction and analysis, hosts Tim Stenovec and Norah Mulinda speak with Geetha Ranganathan, Bloomberg Intelligence Senior Media Analyst and Mark Douglas, CEO of MNTN.
