Netflix (NFLX) reported its Q2 earnings yesterday, July 17, after the close of markets. While the earnings were better than expected, NFLX is trading lower today. In this article, we’ll look at the key takeaways from Netflix’s Q2 report and analyze how to play the stock after its YTD outperformance.
Netflix reported revenues of $11.08 billion in the second quarter, up 15.9% year-over-year and slightly ahead of Street estimates. As a reminder, Netflix has stopped reporting quarterly subscriber numbers even as it attributed the rise in revenues to “more members,” along with higher subscription prices and ad sales. The company’s earnings per share (EPS) came in at $7.19, which easily beat its guidance of $7.03 and the consensus estimate of $7.07.
