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Netflix (NFLX) released its Q3 earnings yesterday which seems to have charged up the bulls - the stock is up over 16% at last check. The price action in Tesla (TSLA), meanwhile – which was the other headline earnings report after the close yesterday - is quite the opposite, with that stock down sharply today after it missed both the topline and bottom-line estimates.
As for Netflix, in my pre-earnings analysis I observed that given the stretched valuations, the probability of the stock staging a post-earnings rally was low. However, Netflix impressed markets with its performance. It reported revenues of $8.54 billion in the quarter, which was in line with estimates, but the adjusted earnings per share of $3.73 was ahead of the $3.49 that analysts were expecting.
