Netflix stock slides on its mixed earnings report, missing on Q2 revenue estimates while boasting substantial subscriber growth — an additional 5.9 million paid subscribers versus estimates of just 2.1 million.
Tesla, on the other hand, beats on revenue and earnings per share projections but falls short of gross margin expectations.
Tesla stock price remained flat after the initial report, but began dropping during the earnings call as CEO Elon Musk and other executives failed to deliver precise specs and start of delivery dates for the Cybertruck, and for a robotaxi-ready vehicle.
Musk and other execs also said during the call that vehicle production would slow down during Q3 due to shutdowns for factory improvements. It’s now down about 4% after hours.
Netflix shares tumbled more than 9% after posting its quarterly results Wednesday after hours. The company said it was too early to assess the effects of its crackdown on its password sharing and revenue from its ad-supported offering.
In its latest quarter, Netflix posted earnings of $3.29 per share on revenue of $8.19 billion. Analysts polled by Refinitiv called for earnings of $2.86 per share and revenue of $8.3 billion.