Netflix, Trump nomination, outages - what's moving markets

Investing.com -- Netflix will be in the spotlight Friday, after the streaming giant beat expectations of net subscriber additions but issued a cautious revenue guidance. Donald Trump accepted the Republican Party presidential nomination, while Wall Street looks set to end the week lower with a sectorial rotation under way.

1. Netflix net adds ahead, revenue guidance cautious

Netflix’s third-quarter revenue guidance fell short of expectations, even as the streaming giant reported better-than-expected second-quarter results amid blowout subscriber additions, driven by a strong content slate and an ongoing crackdown on password sharing.

The mixed nature of these results, released after the market close Thursday, has resulted in Netflix (NASDAQ:NFLX) stock trading largely unchanged premarket Friday. The stock has surged nearly a third so far this year.

Netflix reported second-quarter earnings of $4.88 a share on revenue of $9.56 billion, topping estimates of $4.74 on revenue of $9.53 billion.

The streaming giant also raked in 8 million additional users in the quarter, well above the 4.8 million estimated, but below the 9.3 million seen in the previous three months.

The company had guided for lower net subscriber additions in the second quarter as it is facing saturation in the United States and plans to stop regularly reporting new subscriber additions next year.

On the flip side, the company guided for third-quarter revenue of $9.37 billion, missing estimates of $9.81 billion, and said its advertising business would not become a primary driver of revenue growth until at least 2026.

Investors have been looking at the company's relatively new advertising business as a potential source of growth. Know More

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