Fast Money Blog- 7/18/25

The big news on Wall Street this week was the earnings release for Netflix, Inc. (NFLX).

On Thursday, July 17th, Netflix, Inc. (NFLX) released its Q2 2025 earnings. Top line quarterly revenue came in at $11.08 billion, up 17.3% year over year. The company said that subscription and advertising income was responsible for the growth. 

Looking forward, Netflix updated its revenue forecast to between $44.8 billion and $45.2 billion, up from the $43.5 billion to $44.5 billion it had forecast previously, primarily due to better foreign-exchange conditions due to a weakening dollar, plus the member growth numbers and ad sales.

So Tyrone, why did Netflix stock drop after the earnings release?

Although Netflix reported positive earnings, the stock declined as institutional investors took millions in profits following a strong year-to date rally, in which NFLX increased 42%.  

This is normal and I expect the stock to retrace and go higher as the company continues to see increased ad revenue and higher subscription revenue. 

In my option NFLX is a winner in both the long and short term. 

Just a reminder that more corporate earnings will be coming out in the next few weeks and as usual, I will continue to keep you updated. 

Tyrone Jackson, The Wealthy Investor