🎬 Netflix Earnings Review: Beat But Risk Remains
Netflix delivered a strong Q2 beat—revenue jumped 15.9% YoY to $11.08B, EPS rose 47% to $7.19, and it raised its full-year outlook to $44.8–45.2B . Total streaming revenue and ad-unit growth continue to impress, especially with live sports (NFL, boxing) and generative AI VFX initiatives .
However, Netflix fell ~1.8% in after-hours trading, suggesting concerns about already-high expectations and stretched valuation (~43x forward) .
🔍 What's Driving the Post-Earnings Reaction
1. Valuation pressure – After nearly doubling YTD, Netflix sits at ~43–50× forward EPS. Even a beat might not be enough to please investors .
2. Execution scrutiny – Key growth areas from ad-revenue to live content need consistent results. Street is watching next-gen series like Stranger Things and ad rollouts .
📈 My Strategy:
Short-term traders: Expect a 6% implied volatility move today—watch the $1,180–1,320 range with options. A small press-break trade could work.
Post-dip opportunity: Dip below $1,200 may be a buy-on-strength zone, especially if macro tech sentiment remains solid.
Longer-term: I'm neutral—waiting for execution proof on Netflix's ad and live content strategy before adding more.
✅ Suggested Play:
Consider a synthetic long straddle around $1,250 if you expect a bounce.
Or, sell a small covered call near $1,320 if you're cautious on valuation.
I'm not a financial advisor. Trade wisely, Comrades!
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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