Oct 16, 2019

Netflix stock spikes after earnings beat

Photo: Jaap Arriens/NurPhoto via Getty Images

Netflix's stock was up roughly 10% on Wednesday, after the company said it surpassed expectations for earnings per share and international subscriber growth, a key metric for the company because of saturation in the U.S.

Why it matters: This quarter's earnings are the last before the "streaming wars" really begin to pick up. Disney is expected to launch its subscription streaming service Disney+ on November 12th. AT&T and Comcast/NBCUniversal are slate to launch their respective streaming services next April.

Details: Netflix missed its own projections for domestic subscriber growth slightly, and it projected a lower number of subscriber additions for the following quarter than what investors were expecting.

By the numbers: per CNBC:

  • Earnings per share: $1.47 vs. $1.04 expected, per Refinitiv estimates
  • Revenue: $5.24 billion vs. 5.25 billion expected, per Refintiv
  • Domestic paid subscriber additions: 517,000 vs. 802,000 expected, per FactSet estimates
  • International paid subscriber additions: 6.26 million vs. 6.05 million expected, per FactSet

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

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Snapchat will no longer promote Trump's account in Discover

Photo: Chip Somodevilla/Getty Images

Snapchat will no longer promote President Trump's account on its "Discover" page of curated content, a spokesperson tells Axios, after Trump tweeted comments that some suggested glorified violence amid racial justice protests.

Why it matters: Snapchat is taking action on the president's account for comments he made elsewhere. That's going farther than other big tech firms and signals a commitment to aligning content served to users with core values, rather than making moderation decisions based narrowly on each post made on its own platform.

Updated 1 hour ago - Politics & Policy

Esper catches White House off guard with opposition to military use, photo op

Defense Secretary Mark Esper said at a press briefing Wednesday that he does not support invoking the Insurrection Act, an 1807 law that permits the president to use active-duty troops on U.S. soil, in order to quell protests against racial injustice.

Why it matters: President Trump threatened this week to deploy military forces if state and local governments aren't able to squash violent protests. Axios reported on Wednesday that Trump is backing off the idea for now, but that he hasn't ruled it out.

Chinese coronavirus test maker agreed to build a Xinjiang gene bank

Illustration: Annelise Capossela/Axios

A leading Chinese gene sequencing and biomedical firm that said it would build a gene bank in Xinjiang is supplying coronavirus tests around the world.

Why it matters: U.S. officials are worried that widespread coronavirus testing may provide an opportunity for state-connected companies to compile massive DNA databases for research as well as genetics-based surveillance.