Apr 21, 2020 - Technology

Netflix stock surges after posting massive Q1 subscriber increases

Illustration: Rebecca Zisser/Axios

Netflix's stock was up more than 10% in after-hours trading on Tuesday after the entertainment giant blew past investor expectations for subscriber growth in the first quarter.

Why it matters: Nielsen and other measurement vendors reported that Netflix was experiencing a surge in viewership during the coronavirus pandemic. Netflix blew past the high end of Wall Street's new subscriber estimates, nearly doubling them.

Details: The company also posted its first quarter as a cash flow positive company, partly because it had to halt production spend in response to the coronavirus outbreak.

Yes, but: The streamer conceded that although viewership and subscriber numbers were up, the rate of the U.S. dollar depressed its international revenue, resulting in revenue-as-forecast.

Between the lines: Netflix benefitted from a few huge hits this past quarter as well. The streaming giant, which uses its own measurement standards that are not precisely comparable to television viewership standards, said 64 million households watched its hit documentary 'Tiger King," and its hit reality show 'Love Is Blind' was viewed by 30 million.

By the numbers, per CNBC:

  • Earnings per share: $1.57 per share vs. $1.65 (per Refinitiv consensus estimates)
  • Revenue: $5.77 billion vs. $5.76 billion expected, per Refinitiv
  • Paid subscriber additions: 15.77 vs. 7.2 million expected, per FactSet
  • Total subscriber count: 182.86 million globally

What's next: Netflix will hold a video Q&A presentation for investors at 6pm ET.

Go deeper: Netflix's earnings over the past year:

Go deeper

Updated 18 mins ago - Politics & Policy

Updates: George Floyd protests continue past curfews

Police officers wearing riot gear push back demonstrators outside of the White House on Monday. Photo: Jose Luis Magana/AFP via Getty Images

Protests over the death of George Floyd and other police-related killings of black people continued Tuesday across the U.S. for the eighth consecutive day, prompting a federal response from the National Guard, Immigration and Customs Enforcement and Customs and Border Protection.

The latest: Even with early curfews in New York City and Washington, D.C., protesters are still out en masse. Some protesters in D.C. said they were galvanized by President Trump's photo op in front of St. John's Church on Monday and threat to deploy U.S. troops in the rest of country if violence isn't quelled, NBC News reports.

Updated 28 mins ago - Politics & Policy

Trump backs off push to federalize forces against riots

Photo: Brendan Smialowski /AFP via Getty Images

A day after threatening to federalize forces to snuff out riots across the country, the president appears to be backing off the idea of invoking the Insurrection Act, sources familiar with his plans tell Axios.

What we're hearing: Aides say he hasn’t ruled out its use at some point, but that he's “pleased” with the way protests were handled last night (apart from in New York City, as he indicated on Twitter today) — and that for now he's satisfied with leaving the crackdown to states through local law enforcement and the National Guard.

What we expect from our bosses

Illustration: Eniola Odetunde/Axios

Workers — especially millennials and Gen Zers — are paying close attention to the words and actions of their employers during national crises, such as the protests following the killing of George Floyd in police custody.

Why it matters: American companies have an enormous amount of wealth and influence that they can put toward effecting change, and CEOs have the potential to fill the leadership vacuum left by government inaction. More and more rank-and-file employees expect their bosses to do something with that money and power.