Earnings seasons are synonymous with volatility and uncertainty, and as all eyes are focused on the narrative of a pending recession, we look at two tech stocks on our watchlist.
Netflix Inc. (NASDAQ: NFLX)
It was seemingly doom and gloom for the “flagship” streaming service as it had lost almost 1.2 million subscribers in the first two quarters of the year. Netflix had projected to have an additional 1 million subscribers in the 3rd quarter; however, this number was smashed as they reported an additional 2.41 net subscribers.
- EPS: $3.10 vs. $2.13 per share.
- Revenue: $7.93 billion vs. $7.837 billion.
Netflix is on a drive to crack down on password sharing, and it will be interesting to see how this will affect the number of subscribers in the long term!
Tesla Inc. (NASDAQ: TSLA)
Tesla results were a bit of a mixed bag, with the following data being released:
- Tesla reported $1.05 in adjusted EPS, ahead of expectations of 99 cents, on revenues of $21.45 billion, lighter than the $21.96 billion expected.
- Net income (GAAP) reached $3.33 billion, more than double a year ago, while automotive revenue rose 55% from the previous year’s quarter.
The results come after Tesla announced that they produced 22 000 cars more than they delivered, which brings into question whether the vehicle manufacturer can maintain demand in the market. The market will have to see what happens going into Q4. Concerning the delivery issues, Tesla stated in its report that the shortfall was due to transportation issues and said in its earnings report that it was becoming increasingly expensive to secure the capacity to transport its vehicles.
