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Netflix (NFLX)
Netflix reported robust third-quarter earnings, exceeding analysts’ expectations on both revenue and profits, driven largely by an expansion in its advertising business.
Following the earnings announcement, Netflix’s shares experienced a surge, climbing approximately 5% in after-hours trading.
Netflix added 5.1 million subscribers during the quarter, more than the 4.5 million Wall Street expected. In total, the streaming service now has 282.7 million memberships across all of its pricing tiers.
The streaming giant revealed a significant 35% increase in ad-tier memberships compared to the previous quarter. As part of its growth strategy, Netflix is set to launch its advertising service in Canada in the upcoming quarter, with plans for a broader rollout in 2025.
Although the company does not anticipate advertising to become a key growth driver until 2026, it highlighted that ad-tier subscriptions made up over 50% of new sign-ups in markets where the service is already active.
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Bloomberg Intelligence senior media analyst Geetha Ranganathan told Yahoo Finance: “It’s a pretty high-quality beat. If you were looking for the subscriber numbers, they were definitely there. If you’re looking for the top-line growth number, they obviously over-delivered on that. But I think what really kind of stood out to me was their margin guidance.”
Net income for the period was $2.36bn (£1.80bn), or $5.40 per share, up from $1.68bn, or $3.73 per share, during the same quarter a year earlier. Revenue jumped 15% to $9.83bn from $8.54bn a year earlier.
The company noted that it expects revenue in the fourth quarter to reach $10.13bn and earnings per share to be $4.23. Netflix is projecting revenue for the full year of 2025 to be between $43bn and $44bn.
Ferrari (RACE)
Shares in Ferrari were trending in pre-market trading as the carmaker unveiled its new limited edition supercar that has already sold out despite its €3.6m (£2.98m) base price tag.
The F80 marks the brand’s first major release in this segment in over a decade. It follows in the footsteps of its predecessors, including the LaFerrari from 2013, as well as the legendary Enzo, F50, and F40.
This hypercar boasts a blend of race-inspired aerodynamics and scissor doors. Under the hood, the F80 features a hybrid powertrain, combining a V6 turbo engine with three electric motors. Together, they generate nearly 1,200 horsepower, making the F80 the most powerful Ferrari to date.
The F80 “is the car which raises the bar of our range”, chief marketing and commercial Officer Enrico Galliera said during its presentation in the Ferrari hometown of Maranello. “It’s a car we hope would make history in coming years.”
Just 799 units of the F80 will be produced, and each has already been assigned to a specific client, with total requests at three times the planned output, Galliera said.
“We’ll have to say no to people who do not expect it from us,” he added. The model will be the most expensive road car ever offered by Ferrari.
American Express (AXP)
American Express shares rose 1.8% to an all-time high of $290.91 in pre-market trading as investors anticipate the company’s upcoming third-quarter earnings report scheduled for this Friday.
Wall Street forecasts earnings per share of $3.80 and revenues of $16.67bn. Over the past year, the stock has surged by 84.29%, with a year-to-date increase of 51.1%.
Driving this year’s rally is American Express’s focus on a more affluent clientele, but the upcoming earnings report will be a critical test of whether this momentum can be sustained. Analysts have expressed some reservations about the company’s revenue growth prospects.
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In a recent client report, Bank of America analysts said that the consensus view among investors predicts a 9% revenue increase for 2024, which falls at the lower end of the company’s guidance range of 9% to 11% growth for the year. Similarly, Morgan Stanley analysts expect American Express’s revenue growth to slow to 9.3% this year, just below the midpoint of the management team’s guidance.
Modern (MRNA)
Shares in the pharmaceutical company were bouncing back in pre-market trading after plunging by almost 5% following reports that rival GlaxoSmithKline (GSK.L) is suing for US patent infringement over COVID vaccines.
Moderna has seen its shares plummet to a 52-week low of $55.65, with the biotechnology company’s stock down 35% over the past year.
Jefferies has revised its stock target for Moderna down to $55, citing lower-than-expected guidance for the coming years and postponed cost-cutting measures. Other analysts, including those from Piper Sandler, Oppenheimer, RBC Capital, Brookline Capital Markets and TD Cowen, have similarly adjusted their outlooks for the company.
Moderna is also facing legal challenges, having been sued by British pharmaceutical GlaxoSmithKline. GSK claims that Moderna infringed upon its patents concerning messenger RNA (mRNA) technology, particularly related to the development and sale of its COVID-19 vaccine, Spikevax, which generated $6.7bn in revenue over the past year.
Shares in the fast fashion retailer retreated after the surprise announcement that chief executive John Lyttle is set to step down from his position as the online fashion retailer embarks on a strategic review aimed at improving its trading performance.
Lyttle has notified the company’s board of his decision following a significant decline in sales revenues, particularly in its international markets, over the past six months.
Despite his departure, Lyttle will remain with Boohoo’s leadership team in the coming months to facilitate a smooth transition.
In an update to shareholders, Boohoo announced the signing of a new £222m debt financing agreement, which is expected to provide the necessary funds to support the next phase of its development.
The company also reported a steep decline in underlying profits, which plummeted nearly a third to £21m in the six months ending in August.
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