Netflix shows impressive resiliency.

Market Overview
Read time 1.4 minutes

Year To Date Performances:

1. In a remarkable display of resilience, Netflix not only exceeded profit expectations but also aligned perfectly with revenue forecasts for Q3. Posting earnings of $3.73 a share, the streaming giant outperformed the anticipated $3.49 consensus. With revenues matching the analyst prediction at $8.54 billion, Netflix paints a rosy picture for the future, projecting at least a 22% profit margin expansion in the upcoming year. Despite industry speculation, the company added an impressive 5.89 million subscribers in Q2, pushing its global count to 238.39 million. This surge came as Netflix introduced stricter measures against shared accounts outside user households. As of 2023, however, the company chose discretion, omitting subscriber growth projections in its quarterly summaries. But it's not all smooth sailing: the recent writers and ongoing actors' strikes have stirred the waters of production for Netflix, echoing wider Hollywood struggles. To add to subscriber considerations, U.S. viewers will see a price bump in Premium and Basic plans, though the ad-supported and Standard tariffs remain steady. Amidst these developments, Netflix boasts a win with the live-action adaptation of the manga series, "One Piece," which garnered a whopping 62 million viewers and lit up social media discussions.

2. Despite concerns of an economic downturn, recent data and comments from Federal Reserve Chairman Jerome Powell suggest otherwise. Retail sales in September outpaced projections, growing by 0.7% month-over-month against the predicted 0.3%. Notably, even when excluding motor vehicle sales, there was a 0.6% increase, lending further confidence to the economic health of the US consumer. Concurrently, the US 10-year yield trajectory has been positively influenced by these robust numbers. Powell's remarks at the Economic Club of New York further underscored this optimistic view. He highlighted that the current financial environment might already be exerting the necessary restrictive pressure, potentially negating the need for immediate Fed intervention. Powell attributed the rise in long-term yields more to term premiums than a shift in short-term interest rate expectations. As we look ahead, indications are leaning towards the Fed holding off on rate hikes in November, while December's policy actions remain an open question.

3. Raising capital for your startup? With StartEngine, you can fundraise online – on terms you set and no upfront costs. Turn your brand’s biggest fans into shareholders and tap into StartEngine’s community of 1.8M users to fund your business. Apply today to learn more about raising up to $5M via Reg CF and $75M via Reg A+.*

4. Headlines

   1. Roche has agreed to purchase Telavant Holdings for $7.1 billion. Telavant Holdings is owned by Republican Presidential Candidate Vivek Ramaswamy’s Roivant Sciences.

   2. Car payment delinquency is at its highest rate ever in US history.

   _{* This is sponsored content. Count determined as number of unique email addresses in StartEngine’s database as of 10-6-2023.}