A grim week for Nvidia and Tesla, but Netflix triumphs: Weekly tech roundup
By Louis Juricic and Sarina Isaacs
Investing.com — Here is your weekly Pro Recap on the biggest headlines out of tech this past week: Netflix triumphs; Nvidia hit by new China restrictions; Tesla disappoints; Apple seeing iPhone trouble in China; and ASML garners positive marks despite poor guidance.
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Netflix (NASDAQ:NFLX) shares catapulted higher on Thursday after it reported far better Q3 earnings than anticipated and a healthy rise in subscribers, while also announcing it will hike prices on its streaming services.
The company's earnings of $3.73 per share was well above the $3.49 average analyst target, while $8.54 billion in sales was in line, and paid subscribers rose 8.76 million in the third quarter — well above expectations for just over 6M.
The company acknowledged the «challenging» macro environment for the industry in the past six months due to the writers and actors strikes, and said it is «committed to resolving the remaining issues as quickly as possible.»
Netflix said it sees Q4 EPS of $2.15, reversing from the prior year's loss of $0.47, and anticipates year-over-year revenue growth of around 11% to some $8.69B.
KeyBanc, Morgan Stanley, Truist and DZ Bank all upgraded the stock to buy-equivalent ratings on the news, with KeyBanc citing the company's ongoing success in paid sharing, its rising operating profit and free cash flow, and its estimate that share buybacks «should support a 25%+ EPS growth profile.»
Morgan Stanley, for its part, said, “We believe Netflix will deliver the objectives it set out a year ago, accelerate revenue growth back to double digits and expand margins. At the same time,
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