Netflix reports revenue of $9.37 billion versus $9.27 billion expected. Stocks Burst Then Falls

• Gains of $5.28 versus estimate of $4.52
• Paid streaming adds of 9.33 million vs. 5.11 million
• Q2 Outlook $4.68 vs. $4.54 est.
• Operating profit $2.633 billion versus estimated $2.428 billion

Shares were initially up 3% after the close, then fell to -7% and are now at -4%.

“We are increasing our FY24 operating margin guidance to 25%, based on exchange rates in January 24, from 24,” the company said.

They also said they were “adapting their advertising to become a more meaningful contributor to our business in 2025 and beyond.” So we’ll all continue to pay $15/month and it won’t be long before we get ads with that as well.

The company also appears to be moving into the pulp business lately, including hiring a new head in the film division. They said they want to improve the variety and quality of entertainment “with more quality TV shows and movies, a wider range of games and must-see live programming.”

For the second quarter of 2024, they forecast revenue growth of 16%.

I wonder if this isn’t a technical reaction. The numbers probably weren’t good enough to break this month’s high of $639 and profit-taking took a hit.