Fast Money Blog- 7/22/22

The big story on Wall Street this week was the Netflix earnings release. On Tuesday, July 19th, Netflix, Inc. (NFLX) posted Q2 earnings with top-line revenue of $7.9 billion for the quarter, a 9% increase year-over-year. This increase was driven by an increase in average revenue per membership. In other words, revenue increased due to increases in subscription rates.

The company also said it lost nearly one million subscribers in the second quarter. That’s the largest subscriber loss in company history. (But short of the two million it had forecasted in Q1.)

Looking towards the future, Netflix announced their plans to pump up revenue growth. The company will launch an advertising-supported product in the early part of 2023, adding a cheaper subscription tier.

The company is also expanding their crack-down on password sharing, which has added to slowing revenue growth, as well as focusing on more premium content, including a spin-off of their popular “Stranger Things” series and big-budget, star-driven movie releases.

At this time I do not recommend NFLX as a short-term trade or a long-term hold.

Because of the recent pull back in the stock market I prefer that you invest and trade stocks like: Lowe’s (LOW), Microsoft Corporation (MSFT) and Nike, Inc. (NKE), that have a history of top line revenue growth and dividend increases.

Tyrone Jackson, The Wealthy Investor