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Netflix continues to monetize the virus: its users are shot by confinement


Netflix continues to monetize the confinement to which much of the world has been subjected as a consequence of the coronavirus. In the last three months has gained 10.1 million users worldwide, compared to the 7.5 million expected by the consensus. A situation that is not unknown to him, in the first quarter (when confinement had barely arrived), it captured 15.77 million paid users.

However, this data does not seem to have convinced the market and its shares are falling more than 13% in the 'after hours' of Wall Street. The collapse that the securities are experiencing has not caught surprise investors who expected a strong movement in the market, either upward or downward.

What investors are punishing the most is earnings per share (BPA). Netflix has declared a EPS of $ 1.56, while the consensus of analysts that follows it on the stock market expects $ 1.82.

Despite this information, those of Netflix have reasons for joy. Not only has the number of new users beaten expectations, so have their revenues. Netflix has declared $ 6.15 billion, a figure 1% higher than expected. Analysts estimated that they would be around 6.090 million dollars.

Netflix's good time is not only reflected in the number of users. Regardless of today's movement in the 'after hours', its shares are trading very close to its all-time highs, registered at the beginning of July. A situation that is not exceptional from the video platform, all the FAANG are very similar.

"Nasdaq is the strongest selective on Wall Street and it is a clear "keep" for all those who entered at the time, "recently argued the analyst of Bolsamanía, José María Rodríguez. "Since March it has given several signals to 'buy' and, of course, it is not an index to get short."

The good income and user data do not deceive Netflix, which is not so optimistic for the rest of the year, especially considering that normality is gradually being implemented. "We expect lower growth for the second half of 2020 compared to the previous year", the executives assure in a letter sent to the shareholders.


Netflix has also announced a big change to its executive leadership: Ted Sarandos, who has led his original content efforts, has been named co-CEO to share the top spot with co-founder Reed Hastings.

"This change makes formal what was already informal: that Ted and I share Netflix's leadership," Hastings said in a statement.

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