Today's video focuses on Netflix (NFLX 1.88%) and its fourth-quarter earnings reported on Jan. 20, after the market closed. Unfortunately, investors were not happy with the results as its stock price dropped over 20% on Jan. 21. Fortunately, it is not all doom and gloom for Netflix. Here are some highlights from the video. 

  1. The company reported revenue of $7.7 billion, up 16% year over year (YoY). Net subscriber growth was roughly 8.3 million, up 8.9% YoY but missing its guidance of 8.5 million. 
  2. Unfortunately, Netflix is encountering some issues in international markets. Roughly 90% of new subscribers are outside the U.S. and Canada. The Latin American region is growing at slower levels than anticipated, and in India, the competition has caused Netflix to lower its price. 
  3. The outlook for the upcoming quarter might be low compared to investors' expectations. Management expects to add roughly 2.5 million new subscribers, up 8% YoY, and revenue of $7.9 billion, up 10% YoY. The revenue growth rate would be one of the slowest the company has ever seen. On the bright side, management expects the company to finally reach free cash flow positive by the end of the year. 

Click the video below for my full thoughts and analysis. 

*Stock prices used were the premarket prices of Jan. 21, 2022. The video was published on Jan. 21, 2022.