Fast Money Blog- 4/23/21

On Tuesday, April 20th, Netflix, Inc. (NFLX) reported its Q1 2021 earnings. The company posted its top-line revenue at $7.16 billion, a growth of 24% year over year. As of the end of March, it had 207.6 million total paying subscribers, with about 67 million of them in the United States.

On the downside Netflix added only 3.98 million new subscribers in Q1. Last year, in the same period, just as the pandemic was underway, the company added a record 15.7 million subscribers, so this was quite a backslide.

However, keep in mind that Netflix pulled back on productions during the pandemic, which has now rippled into its release schedule. Therefore, the company didn’t have any big returning series during the period of Q1.

Although competitors are gaining ground, Netflix is in its best financial shape of its history. It hit a milestone at the end of 2020, when it said it would no longer look to borrow money to fund its content offerings. In other words, Netflix finally became a truly profitable business after topping 200 million subscribers.

I would recommend NFLX as a hold only and I also recommend not to purchase any additional shares.

Next week brings a slew of earnings releases:

Tuesday, April 27th-

Microsoft Corporation (MSFT), Pinterest, Inc. (PINS) and Visa, Inc. (V)

Wednesday, April 28th-

Apple, Inc. (AAPL)

I will keep you apprised of earnings results as they are released.

Stay Open! Stay Positive!

Tyrone Jackson

The Wealthy Investor