How Netflix Rates After Its 10% Earnings Pop

The pivot is paying off… Published By Money & Markets, LLC. October 18, 2024 Published By Money & Markets, LLC. October 18, 2024 [Turn Your Images On] [Turn Your Images On] From The Desk of Chad Stone Managing Editor, [Money & Markets Daily]( How Netflix Rates After Its 10% Earnings Pop Money & Markets Daily, It's earnings season again… Matt dove deep into big bank earnings and the financial sector in yesterday's Money & Markets Daily. ([Click here]( if you missed it.) We've already seen some stocks rally in a big way after quarterly calls, and there's no doubt we'll see more in the coming weeks. It can stir up feelings of FOMO (fear of missing out), and that's totally natural. Instead of dwelling on that, I want to show you how we can use Green Zone Power Ratings as it relates to earnings. And I've found a "Bullish" stock that's set to outperform after its blockbuster earnings call Thursday afternoon. But first, let's see how our system and quarterly calls interact… Green Zone Power Ratings and Earnings When Adam O'Dell designed Green Zone Power Ratings, he didn't base the entire model around quarterly earnings reports. It is a complex system that considers dozens of variables and boils those down to six simple factors and an overall rating that is easy to digest. This is also a long buy-and-hold indicator. We're looking at projections for a stock for the next 12 months. While an earnings report may spark a short-term move, Green Zone Power Ratings tells you if that bullish (or bearish) price action should continue from here. But we can still use the system to our advantage because we can do two things: - See if a recent price rally is sustainable for a specific stock. - See how a stock rates before it reports — to either avoid a potential crash or get in before the next earnings beat. Let's put it into practice with a company that blew the doors off with its latest numbers. --------------------------------------------------------------- [Turn Your Images On]( From our Partners at Paradigm Press. [Exposed: Democrats’ Secret Plan to Keep Trump Out of the White House]( Former advisor to the CIA, the Pentagon and the White House Jim Rickards just released… [This shocking new video exposing Democrats’ secret plan to keep Trump out of the White House…]( Even if he wins the election. [Click here to see the details and learn how to prepare…]( Because this could trigger the biggest constitutional crisis in our nation’s history. --------------------------------------------------------------- The Netflix Pivot For a while there, it looked like Netflix Inc. (Nasdaq: NFLX) was in trouble. The streaming service was struggling to attract new subscribers while spending piles of cash on original content. (Matt highlighted these issues way back in 2021 if you want to [check it out]( So Netflix did what most never thought it would… It started offering a cheaper subscription tier that includes advertising back in late 2022. Subscribers at this level can still binge all they want, so long as they're OK with interruptions from big brands like T-Mobile and Nespresso. And it looks like this move is paying off. During its third quarter earnings call on Thursday, Netflix reported its ad-tier subscriber base grew by 35% quarter-over-quarter. It now boasts 282.7 million subscribers across all of its tiers. That boost helped the company beat expectations on both earnings per share ($5.40 vs. $5.13 expected) and revenue ($9.83 billion vs. $9.77 billion) for the quarter. Investors pushed the stock 10% higher today after the strong earnings report. And while that growth is impressive, it's tough to judge a stock off one earnings call. That's where Green Zone Power Ratings comes in… [Turn Your Images On] Netflix stock currently rates a "Bullish" 74 out of 100 in our system. Stocks in this category are expected to beat the broader market by 2X over the next 12 months. Looking closer at its 95 Growth rating… Netflix’s growth has been robust, with a 76.2% earnings-per-share rise over the last 12 months. This same time last year, the company’s earnings growth was paltry at -16.4%. Netflix's sales increased by 15% over the previous quarter and 14.7% in the last 12 months. Similar to its earnings, Netflix’s trailing 12-month sales growth was just 3.5% at the same time last year. It also boasts a strong Quality rating of 94 out of 100. Its return on assets has grown from 8.7% 12 months ago to 15.3% today. The internet and data services industry average is -14.6%. Its return on equity has grown from 20.3% a year ago to 34.7% now. This is particularly strong compared to the industry average of -19.9%. And investors are tuned in to these strong numbers. The stock is up almost 120% over the last year. That's reflected in its 74 rating on Momentum. It looks like the Netflix pivot is paying off, and Green Zone Power Ratings confirms that. Until next time, Chad Stone Managing Editor, [Money & Markets Daily]( --------------------------------------------------------------- [Turn Your Images On]( From our Partners at Paradigm Press. [[Urgent] Starlink Set For The Largest IPO In History?]( He turned PayPal from a tiny, off-the-radar startup… to a massive $64 billion giant. Then, he did it again with Tesla… which is up more than 19,500% since 2010. For perspective, that turns $100 invested into almost $20,000! And now, Elon could be set to do it for the third and final time… with what might be his biggest breakthrough yet. And for the first time ever, you have the rare chance to profit BEFORE the upcoming IPO. [Click here now for the urgent details on this hidden play.]( --------------------------------------------------------------- [Turn Your Images On]( Privacy Policy The Money & Markets, 702 Cathedral Street, Baltimore, MD 21201. To ensure that you receive future issues of Money & Markets, please add info@mb.moneyandmarkets.com to your address book or [whitelist]( within your spam settings. For customer service questions or issues, please contact us for assistance. The mailbox associated with this email address is not monitored, so please do not reply. Your feedback is very important to us so if you would like to contact us with a question or comment, please click here: [( Legal Notice: This work is based on what we've learned as financial journalists. It may contain errors and you should not base investment decisions solely on what you read here. It's your money and your responsibility. Nothing herein should be considered personalized investment advice. 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Your feedback is very important to us so if you would like to contact us with a question or comment, please click here: [( Legal Notice: This work is based on what we've learned as financial journalists. It may contain errors and you should not base investment decisions solely on what you read here. It's your money and your responsibility. Nothing herein should be considered personalized investment advice. Although our employees may answer general customer service questions, they are not licensed to address your particular investment situation. Our track record is based on hypothetical results and may not reflect the same results as actual trades. Likewise, past performance is no guarantee of future returns. Certain investments carry large potential rewards but also large potential risk. Don't trade in these markets with money you can't afford to lose. Money & Markets permits editors of a publication to recommend a security to subscribers that they own themselves. However, in no circumstance may an editor sell a security before our subscribers have a fair opportunity to exit. Any exit after a buy recommendation is made and prior to issuing a sell notification is forbidden. The length of time an editor must wait after subscribers have been advised to exit a play depends on the type of publication. (c) 2024 Money & Markets, LLC. All Rights Reserved. Protected by copyright laws of the United States and treaties. This Newsletter may only be used pursuant to the subscription agreement. Any reproduction, copying, or redistribution, (electronic or otherwise) in whole or in part, is strictly prohibited without the express written permission of Money & Markets. 702 Cathedral Street, Baltimore, MD 21201. (TEL: 800-684-8471) Remove your email from this list: [Click here to Unsubscribe](