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MarketFoolery

Netflix, Snap, WD-40

MarketFoolery

The Motley Fool

Money, Business, Motley, Business News, Stocks, News, Investing, Market, Fool

4.71.7K Ratings

🗓️ 21 October 2020

⏱️ 14 minutes

🧾️ Download transcript

Summary

Subscriber growth for Netflix is at its lowest point in four years. Snap’s 3rd-quarter surprise sends the stock up 30%. WD-40 hits an all-time high after strong 4th-quarter results. Maria Gallagher analyzes those stories and shares which upcoming Netflix show she’s most looking forward to.

Transcript

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0:00.0

It's Wednesday, October 21st. Welcome to Market Foolery. I'm Chris Hill.

0:06.0

Joining me from the Financial Capital of the United States of America, it's Maria Gallagher.

0:11.0

Thanks for being here.

0:12.0

Thanks for having me.

0:14.1

We've got a stock up more than 15%.

0:17.2

We have another stock up more than 30%, but we're going to start today with Netflix.

0:23.0

In the past 12 months, shares of Netflix are up more than 200%.

0:28.0

So forgive me for not ringing my hands over the fact that shares of Netflix are down about 6% this morning.

0:34.8

Third quarter profits came in lower than expected.

0:39.2

That said, weakest subscriber growth in four years.

0:45.0

That's, I don't know, how, it doesn't seem like something to worry a lot about, but it certainly

0:52.2

is noteworthy.

0:53.0

I actually think it's something that's kind of to be expected.

0:56.0

So there's something called the pull forward effect, which is there's rapid growth in the first half of the year.

1:02.0

So then that kind of steals the

1:04.7

subscribers that would have happened at the back half of the year so they added 2.2

1:08.8

million new subscribers which is less than the 3.3 million predicted.

1:14.0

But in total for the year, they added over 26 million customers,

1:19.0

which is more than they did of all of last year.

1:22.0

So through the first nine months of 20. than they're on users in 2020, which will be their strongest year of growth ever. So even though this

1:35.2

quarter is their lowest number since 2015, if you kind of zoom out and look at that big picture,

1:42.0

they're going to get to almost 200 million customers in total,

...

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