Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Denver news in your inbox

Catch up on the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Des Moines news in your inbox

Catch up on the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Minneapolis-St. Paul news in your inbox

Catch up on the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tampa Bay news in your inbox

Catch up on the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Charlotte news in your inbox

Catch up on the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Photo: Chesnot/Getty Images

Netflix's stock was down over 6% on Tuesday, immediately after it delivered weak Q2 guidance to investors in its first quarter earnings report. The stock rebounded minutes later, bringing Netflix's stock down only marginally from where it was before earnings.

Why it matters: Normally, when Netflix beats estimates in earnings, revenue and subscriber additions, its stock would skyrocket, especially amid reports of rival streaming services launching in the marketplace. But investors were bearish on the fact that Netflix says its estimated Q2 earnings per share would be $0.55 compared to the $0.99 analysts were expecting.

By the numbers: per CNBC:

  • Earnings per share: 76 cents, vs. 57 cents expected, according to Refinitiv consensus estimate.
  • Revenue: $4.52 billion, vs. $4.5 billion expected, per Refinitiv consensus estimate.
  • Domestic paid subscriber additions: 1.74 million, vs. 1.61 million, forecast by FactSet
  • International paid subscriber additions: 7.86 million, vs. 7.31 million, forecast by FactSet

Details: The stock initially sunk after the company projected its second quarter earnings per share to be nearly half of what investors anticipated and that paid membership additions would to be less than Wall Street's expectations.

  • Yes, but: Netflix has a traditionally slow Q2, which could have investors feeling slightly more optimistic about the guidance.
  • Netflix says it anticipates a net add of 5 million paid subscribers for the second quarter, which is below Wall Street’s expectations for 6.09 million new paid members.

What's next: Netflix will hold a video Q&A presentation for investors at 6:00 pm ET.

Go deeper

Updated 35 mins ago - Politics & Policy

Inauguration Day dashboard

Screenshot: Fox News

President Trump has delivered a farewell speech and departed Washington for the last time on Air Force One, kicking off the day that will culminate with President-elect Joe Biden taking office.

What's next: The inaugural celebration for young Americans is being livestreamed, starting at 10am.

Updated 51 mins ago - Politics & Policy

Trump departs on final Air Force One flight

President Trump and his family took off on Air Force One at 9 a.m. on Wednesday morning for the final time en route to Florida.

The big picture: Trump's final hours as president were punctuated by his decisions to snub his successor's inauguration and grant pardons to many of his allies who have been swept up in corruption scandals.

Dion Rabouin, author of Markets
2 hours ago - Economy & Business

Janet Yellen said all the right things to reassure the markets

Illustration: Aïda Amer/Axios

Treasury Secretary nominee and former Fed chair Janet Yellen's confirmation hearing before the Senate Finance Committee on Tuesday showed markets just what they can expect from the administration of President-elect Joe Biden: more of what they got under President Trump — at least for now.

What it means: Investors and big companies reaped the benefits of ultralow U.S. interest rates and low taxes for most of Trump's term as well as significant increases in government spending, even before the coronavirus pandemic.