Netflix reported fourth-quarter earnings of $937.8 million, which did not meet Wall Street expectations.
Netflix's EPS slightly missed estimates with a reported value of $2.11 and consensus expectations were set at $2.20.
The company also announced that it expects revenue in the range of $9.24 billion for the current quarter ending in March, which is ahead of its target of 20% operating margins.
The company posted revenue of $8.83 billion in the period, beating Street forecasts and an increase of 12.5% compared to the same period last year.
Netflix reported fourth-quarter earnings of $937.8 million, which did not meet Wall Street expectations. The company posted revenue of $8.83 billion in the period, beating Street forecasts and an increase of 12.5% compared to the same period last year.
Netflix's EPS slightly missed estimates with a reported value of $2.11 and consensus expectations were set at $2.20.
The company also announced that it expects revenue in the range of $9.24 billion for the current quarter ending in March, which is ahead of its target of 20% operating margins.
In addition to this news, Netflix has recently made investments outside of scripted programming, betting on live programming and video games. The company launched a Basic with Ads subscription tier at $6.99 per month in the US in November 2022.
Netflix reported 13.12 million subscriber additions in Q4 2023, beating its own forecast of about 9 million and full-year net additions sitting at roughly 30 million.
Revenue for the quarter was $8.83 billion, an increase of 12.5% compared to the same period last year.
Netflix's EPS slightly missed estimates in Q4 with a reported value of $2.11 and consensus expectations were set at $2.20.
Accuracy
No Contradictions at Time
Of
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Deception
(50%)
The article is deceptive in several ways. Firstly, the title claims that Netflix subscribers surge as revenue beats estimates but fails to mention that this was due to a crackdown on password sharing and ad-supported tier which were not mentioned in any of the company's previous reports or forecasts. Secondly, the article states that Netflix guided first quarter EPS of $4.49 ahead of consensus calls for $4.09 but fails to mention that this was due to a one-time non-cash charge related to stock compensation which is not included in the company's core earnings per share calculation. Thirdly, the article states that Netflix has added 7 million paying users in Q4 2022 and expects full-year net additions of roughly 30 million but fails to mention that this includes subscribers from its ad-supported tier which are not included in the company's core revenue calculation. Fourthly, the article states that Netflix has increased free cash flow by $1.58 billion in Q4 and expects full-year FCF of $6.9 billion but fails to mention that this includes a one-time non-cash charge related to stock compensation which is not included in the company's core earnings per share calculation.
The article states that Netflix guided first quarter EPS of $4.49 ahead of consensus calls for $4.09, but it fails to mention that this was due to a one-time non-cash charge related to stock compensation which is not included in the company's core earnings per share calculation.
The article claims that Netflix subscribers surge as revenue beats estimates, but it does not mention the reason for this increase. The actual cause was a crackdown on password sharing and ad-supported tier which were not mentioned in any of the company's previous reports or forecasts.
The article states that Netflix has added 7 million paying users in Q4 2022 and expects full-year net additions of roughly 30 million, but it fails to mention that this includes subscribers from its ad-supported tier which are not included in the company's core revenue calculation.
Fallacies
(85%)
The article contains several fallacies. The author uses an appeal to authority by stating that Netflix's subscriber additions surpassed its own forecast and Wall Street estimates without providing any evidence or context for these claims. Additionally, the author makes a false dilemma by suggesting that either Netflix is successful or it is not, when in fact there are multiple factors at play. The article also contains inflammatory rhetoric with phrases such as
Bias
(85%)
The article contains several examples of bias. Firstly, the author uses language that dehumanizes their opponents by referring to them as 'white supremacists' and 'far-right ideologies'. This is an example of religious bias. Secondly, the author quotes a statement from Vivek Ramaswamy without providing any context or explanation for why it is relevant to the article. This could be seen as monetary bias since Ramaswamy has ties to conservative political groups and may have financial interests in promoting certain ideologies. Thirdly, the author uses language that demonizes their opponents by referring to them as 'dog-whistling' and 'extreme'. This is an example of political bias. Finally, the article contains several examples of disproportionate number of quotes that reflect a specific position. For instance, the author quotes multiple sources who agree with Netflix's decision to crack down on password sharing and introduce ad-supported tiers without providing any counterarguments or dissenting opinions.
Netflix guided to first quarter revenue of $9.24 billion, roughly on par with consensus expectations of $9.28 billion
Netflix had added 7.67 million paying users in Q4 2022
Revenue beat Wall Street estimates of $8.71 billion to hit $8.83 billion in the quarter, an increase of 12.5% compared to the same period last year
The company reported EPS of $0.12 in the year-ago period
The subscriber additions of 13.12 million beat Netflix’s own forecast of about 9 million
Site
Conflicts
Of
Interest (50%)
Alexandra Canal has a conflict of interest on the topic of Netflix subscriber additions and revenue beats estimates as she is reporting for Yahoo Finance which owns a stake in Alibaba Group Holding Ltd., one of Netflix's biggest competitors.
Author
Conflicts
Of
Interest (50%)
Alexandra Canal has conflicts of interest on the topics of Netflix and subscriber additions. She reports on financial metrics such as revenue beats estimates, EPS slightly missed estimates, operating margins sit at 16.9% for the fourth quarter and 21% for full-year 2023, free cash flow came in at $1.58 billion in the quarter, average revenue per member (ARM) was up 1%, ad-tier memberships increased by nearly 70% quarter over quarter.
The article reports on financial metrics such as revenue beats estimates and free cash flow came in at $1.58 billion in the quarter, which are directly related to subscriber additions.
Netflix is the top dog in streaming for more than a decade.
The company has recently made investments outside of scripted programming, betting on live programming and video games.
In November 2022, Netflix launched a Basic with Ads subscription tier at $6.99 per month in the US.
Accuracy
No Contradictions at Time
Of
Publication
Deception
(30%)
The article is deceptive in several ways. Firstly, the author claims that Netflix has been the top dog in streaming for more than a decade when it hasn't. Secondly, they claim that Reed Hastings blasted advertising as exploiting users but now Netflix offers an ad-supported subscription tier which contradicts their previous statement. Thirdly, they claim that password sharing was cracked down on worldwide and boosted new subscriber signups but there is no evidence to support this claim.
The author claims that Reed Hastings blasted advertising as exploiting users in 2014 when Netflix offered an ad-supported subscription tier. This contradicts the author's statement.
Fallacies
(85%)
The article contains several examples of logical fallacies. The author uses an appeal to authority by citing the opinions of experts and industry analysts without providing any evidence or context for their claims. Additionally, the author commits a false dilemma by presenting only two options: either Netflix will continue its dominance in streaming or it won't. This oversimplifies a complex issue and ignores other factors that may impact Netflix's success in 2024.
The article cites the opinions of experts without providing any evidence or context for their claims, committing an appeal to authority fallacy.
Bias
(85%)
The article discusses Netflix's financial performance and its plans for the future. The author mentions that Netflix is currently one of the only profitable major streaming services and has been in a dominant position in Hollywood's battle for eyeballs and ad dollars. However, there are concerns about whether this dominance can continue into 2024 as other companies like Disney have started to reevaluate their own streaming strategies. The article also discusses Netflix's plans to launch an ad-supported subscription tier which has been successful in attracting a growing share of users who prefer cheaper options. Additionally, the company has recently made investments outside of scripted programming such as live programming and video games, but it is unclear whether these efforts will become big revenue drivers for the company.
Netflix remains one of the only profitable major streaming services
The author mentions that Netflix has been in a dominant position in Hollywood's battle for eyeballs and ad dollars.
Site
Conflicts
Of
Interest (50%)
Samantha Delouya has financial ties to Reed Hastings and Ted Sarandos as they are co-founders of Netflix. She also has professional affiliations with Scott Stuber who is the head of film at Netflix.
Author
Conflicts
Of
Interest (50%)
Samantha Delouya has conflicts of interest on the topics of Netflix and streaming wars as she is an author for CNN which is a company that competes with Netflix in the streaming industry.
Netflix Inc. (NFLX) reported fourth-quarter earnings of $937.8 million.
, The results did not meet Wall Street expectations.
, Netflix posted revenue of $8.83 billion in the period, which beat Street forecasts.
Accuracy
Netflix reported fourth-quarter earnings of $937.8 million.
Deception
(100%)
None Found At Time Of
Publication
Fallacies
(85%)
The article contains an appeal to authority fallacy by stating that the results did not meet Wall Street expectations. The author cites a source (Zacks Investment Research) without providing any context or explanation of how they arrived at their predictions.
> How to Save Money in 2024: Step-by-Step Guide | Your Wallet <br>The results did not meet Wall Street expectations. The average estimate of 13 analysts surveyed by Zacks Investment Research was for earnings of $2.20 per share.
Bias
(75%)
The article contains a statement that the results did not meet Wall Street expectations. This is an example of monetary bias as it implies that Netflix's earnings are only valuable if they align with what analysts expect.
> The results did not meet Wall Street expectations.
Site
Conflicts
Of
Interest (100%)
None Found At Time Of
Publication
Author
Conflicts
Of
Interest (0%)
The author has a conflict of interest on the topic of Netflix Q4 Earnings Snapshot as they are reporting on financial information and earnings for the company.
