Welcome to See King Alpha's Wall Street breakfast, where we cover the top news for investors every morning.

Good morning, today is Thursday, July 20th, and I'm your host Julie Morgan.

Netflix dips on a revenues miss and subscriber beat.

Tesla is down as investors size up a margins crunch

and Catalan gains on a report that an activist has taken interest.

Here's what's making headlines today.

Netflix is down 7% pre-market after posting a second quarter earnings report that missed slightly on revenues, but topped expectations on profit and subscriptions.

Revenues rose 2.7%, falling a bit short of expectations for 4% growth.

Operating income, though, jumped more than 22%,

and operating margin ticked up to 22.3%.

The streamer added a net 5.89 million new subscriptions, beating analysts expectations for

additions of just over 2 million.

In terms of the crackdown on password sharing, the company said the business impacts of that product experience will roll in over several quarters, so it's not an overnight kind of thing.

And that's in part because some borrowers won't

immediately sign up for their own accounts, but will do so next month or three

months or six months or maybe even longer down the line.

In terms of free cash flow, the 2023 forecast came in even stronger,

bumping to $5 billion from a previous $3.5 billion.

But despite the significant increase in forecasts for

2023, the company said it might mean some quote unquote lumpiness in

2024 free cash flow.

Tesla is down more than 3% pre-market. The company topped Q2 revenue and EPS marks, but did not boost full year

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