The third and final season of the global sensation Squid Game gave Netflix a strong boost in the second quarter. The streaming giant reported earnings per share of $7.19, beating the analysts’ estimate of $7.08. Revenue came in at $11.08 billion, slightly ahead of projections. Netflix said Squid Game season 3 was a massive hit, attracting 122 million views and reinforcing its dominance in international content. (Source: Reuters)

Reuters

Despite delivering strong financials, Netflix shares fell 1.8% in after-hours trading to $1,251.86. The stock had already climbed nearly 44% year-to-date, reflecting high investor expectations. Some market watchers noted that the earnings report, though solid, may not have been as spectacular as hoped, particularly in terms of forward guidance.

TIL Creatives

Netflix raised its full-year revenue forecast to a range of $44.8 billion to $45.2 billion, up from its earlier guidance of up to $44.5 billion. The revision was attributed to favourable currency movements, healthy subscriber growth, and improved ad sales. However, analysts like Thomas Monteiro felt the guidance was too cautious, especially for a stock with such high valuation expectations.

ETMarkets.com

To appeal to more price-sensitive customers, Netflix is continuing to grow its ad-supported plan, though it says ads won’t be a major revenue driver this year. The platform has also added live events, including WWE wrestling, to attract both advertisers and viewers. When asked about potential acquisitions, CFO Spencer Neumann emphasised that Netflix prefers building its content and capabilities over buying assets, saying there’s still plenty of room to grow with its current strategy.

iStock

Agencies