Netflix Beat, Raised Ad Sales, But Stock Might Take A Breather
Netflix reported earnings after the bell and dipped slightly, even with a strong 16% revenue jump last quarter. Net profit rose 46%, but investors seemed more focused on margins.
The streaming giant—now worth more than $Warner Bros. Discovery(WBD)$ and $Walt Disney(DIS)$ combined—posted an impressive 34% operating margin in Q2. However, that might not last. Netflix guided for a full-year margin of 29.5%, just below Wall Street’s 29.7% expectation.
This marks $Netflix(NFLX)$’s sixth straight quarter of double-digit revenue growth, and ad revenue is still expected to double this year. Still, after a big rally while other sectors struggled in spring, the stock may take a breather this summer before its next move.
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