22.10.25 - Earnings - Netflix disappoints

Netflix reported its quarterly earnings yesterday after the close. Despite delivering solid subscriber growth, the market focused on weaker-than-expected revenue guidance and signs of slowing momentum in its ad-supported business. Shares dropped around 7% in pre-market trading, setting a cautious tone for the rest of the “Magnificent 7” ahead of their earnings. Tonight Tesla will release its earnings after the market close.

Markets: US Futures trading almost flat

• Netflix: down 7% pre-market

• Tesla: unchanged pre-market

My View: Netflix is the first of the “Magnificent 7” to report, and the initial reaction is clearly negative. The question now is whether this signals broader weakness across the mega-cap tech space or remains an isolated case.
Tesla will report after-hours tonight. Given the market’s current sensitivity to growth and margins, expectations are high. Focus will also be on the robotaxi project, maybe the key driver for sentiment. Any disappointment could lead to further pressure on the group and weigh on overall sentiment.

For now, the tone is cautious: one weak report doesn’t make a trend, but it could remind investors how much perfection is already priced into these names.

Disclosure ETFMandate portfolio: short positions in Tesla and Netflix

Become a member to access more valuable market updates like this