Netflix stock falls after earnings miss estimates, operating profit takes a hit

October 22, 2025

Netflix stock falls after earnings miss estimates, operating profit takes a hit

Breaking News

Image source: Adobe Stock

Netflix (NFLX) reported earnings that missed analyst expectations on both revenue and profit, sending shares over 6% lower in premarket trading on Wednesday.

Netflix reported revenue of $11.51 billion, just shy of Bloomberg consensus estimates of $11.52 billion and slightly below the company’s own guidance of $11.53 billion. That compares to $9.82 billion in the same quarter last year.

Earnings per share came in at $5.87, missing analyst expectations of $6.94 and Netflix’s internal forecast of $6.87, though still above the $5.40 reported a year ago.

The company guided to revenue for the current quarter above Wall Street expectations, forecasting Q4 revenue of $11.96 billion compared to the $11.90 billion analysts polled by Bloomberg had expected.

Earnings are also expected to exceed expectations for the quarter. The company sees $5.45 a share, higher than analyst estimates of $5.42.

For full-year 2025, Netflix expects revenue of $45.1 billion, toward the upper end of its previous $44.8 billion to $45.2 billion forecast range. Yahoo Finance reports.

EdgeUp

🚙 Tesla Q3 preview: Robotaxi, AI ambitions on the agenda following high-water mark in sales

Tesla (TSLA) stock went on a tear to end the third quarter, erasing early 2025 losses as investors bet on the firm’s AI-related ambitions.

A strong sales quarter and a detente between CEO Elon Musk and former BFF President Trump also helped, but the question remains whether Tesla’s sky-high valuation will continue to defy gravity.

Tesla’s Q3 earnings report, slated for release on Wednesday after the bell, comes with the S&P 500 (^GSPC) and Nasdaq (^IXIC) within striking distance of new highs.

The broader market has shaken off Trump’s unpredictable tariff war, though fears of an economic slowdown in the US persist.

Plus, auto sector tariffs of 25% on imported cars and parts are still in place, hurting domestic automakers.

The focus for Tesla is on what happens as a result of the expiration of the federal EV tax credit and the company’s robotaxi ambitions. Yahoo Finance reports.


🥩 Why Beyond Meat stock is up about 600% in 3 days

Beyond Meat (BYND) is having another meme-stock moment, despite the fundamentals of its business being less than as sizzling as a plant-based burger right off the grill.

Shares of the struggling faux-meat maker have gained close to 600% in the past three trading sessions.

Gains look poised to continue on Wednesday, with shares up as much as 133% in premarket trading.

During that stretch, the company's ticker page has been among the most active on the Yahoo Finance platform.

There appear to be two catalysts behind the surge. First: On Tuesday, Beyond Meat said its "Beyond Burger 6-pack" and Beyond Chicken Pieces" will be available at 2,000 Walmart (WMT) stores across the US.

Second: On Monday the stock was added to the Roundhill Meme Stock ETF (MEME). Yahoo Finance reports.


🎞️ Warner Bros. Discovery says it’s open to a sale; shares jump 10%

Warner Bros. Discovery said Tuesday it’s expanding its strategic review of the business and is open to a sale, sending shares of the company 10% higher in morning trading.

Earlier this year, WBD announced plans to split into two separate entities, a streaming and studios business and a global networks business. It’s also been fielding takeout interest from the newly merged Paramount Skydance.

But on Tuesday, WBD said it’s received “unsolicited interest” from multiple parties and will now review all options.

The company said it’s still moving toward the previously announced separation in the meantime. CNBC reports.


🛒 You’ll soon be able to shop Walmart’s catalog on ChatGPT

Walmart is partnering with OpenAI to let users browse and make purchases directly through its popular chatbot ChatGPT, as the world’s largest retailer looks to use AI to leapfrog rival Amazon in online shopping.

Walmart CEO Doug McMillon said in an announcement Tuesday that the retailer’s current online shopping experience consists of a “search bar and a long list of item responses.”

That is about to change, he said, thanks to AI’s ability to provide a multimedia experience with more personalized answers.

A Walmart spokesperson told CNN that the feature will launch in the fall, offering an extensive list of Walmart items as well clothing, entertainment and food from third-party sellers.

Items from Sam’s Club’s catalog will launch soon after. CNN reports.


🏨 Hilton cuts 2025 room revenue forecast on subdued US travel demand

Hotel operator Hilton Worldwide slashed its forecast for 2025 room revenue, hurt by muted U.S. travel demand.

The McLean, Virginia-based company now expects full-year revenue per available room (RevPAR), a crucial metric for the hospitality industry, to grow up to 1%, compared with its earlier forecast of an up 2% rise.

Travel demand in the U.S. has taken a hit as households worry that a shifting tariff policy could push up price of goods and eat into their purchasing power.

Hilton's room revenue in the U.S. fell 2.3% during the third quarter. MarketScreener reports.


📊 How GE earnings cleared a high bar – and sent the stock higher

The stock rose after the company reported better-than-expected numbers and raised guidance.

GE Aerospace announced adjusted quarterly earnings per share of $1.66 from adjusted revenue of $11.3 billion.

Wall Street was looking for earnings per share of $1.46 from revenue of $10.4 billion, according to FactSet. Yahoo Finance reports.


🤖 Vertiv stock (VRT) rallying ahead of Q3 earnings on AI infrastructure boom

Vertiv Holdings Co. (VRT), a key player in the critical digital infrastructure sector, is heading into its third-quarter 2025 earnings announcement this morning, with significant momentum.

The stock is currently hovering around $175, marking an impressive 15% surge over the past month.

This upward trajectory reflects growing market confidence, fueled by robust demand for Vertiv's solutions, particularly those supporting the rapidly expanding AI-enabled infrastructure.

Analysts are broadly bullish, anticipating strong results driven by the insatiable demand for data center infrastructure upgrades and expansions.

The consensus estimate for the third quarter is earnings of $0.99 per share and revenue of $2.59 billion. AskTraders reports.

Top 5 Movers in Early Pre-Market

(All pricing and percent gains are based on Early Pre-Market from 4:00 AM to 7:00 AM Eastern Time)
Stock Analysis reports.


1) BYND: Beyond Meat, Inc.
Total gain: +96.69%

2) BDSX: Biodesix, Inc.
Total gain: +33.38%

3) DNUT: Krispy Kreme, Inc.
Total gain: +31.81%

4) RANI: Rani Therapeutics Holdings, Inc.
Total gain: +27.37%

5) ISRG: Intuitive Surgical, Inc.
Total gain: +17.52%

Yesterday’s Biggest Movers

The closing price of the top three market percent gainers trading near or above $3 on October 21.
Stock Analysis reports.

*All pricing and percent gains are based on regular market trading hours from 9:30am to 4:00pm Eastern Time

1) BYND: Beyond Meat, Inc.
Total gain: +146.26%
The company announced plans to expand distribution into Walmart stores. NY Post reports.

2) NERV: Minerva Neurosciences, Inc.
Total gain: +140.98%
The company announced that the Company has entered into a securities purchase agreement with certain institutional investors (the “Purchasers”) that will provide up to $200 million in gross proceeds, before deducting placement agent fees and other expenses, to Minerva through a private placement that includes initial upfront funding of $80 million in exchange for shares of the Company’s Series A preferred stock, par value $0.0001 per share (the “Series A Convertible Preferred Stock”) and up to an additional $80 million in gross proceeds if all Tranche A warrants are exercised, subject to the terms and conditions specified therein. Additional proceeds of $40 million may be received if all Tranche B warrants are exercised by cash payment upon the achievement of milestone event as further described below. Globe Newswire reports.

3) MCTA: Charming Medical Limited
Total gain: +75.00%
The company announced the pricing of its initial public offering (the "Offering") of 1,600,000 Class A ordinary shares, par value $0.0001 per share (the "Class A Ordinary Shares") at a price of $4.00 per share (the "Public Offering Price"). The Class A Ordinary Shares are expected to commence trading on the Nasdaq Capital Market on October 21, 2025, under the ticker symbol "MCTA". The Offering is expected to close on or about October 22, 2025, subject to the satisfaction of customary closing conditions. PR Newswire reports.

Today’s Notable Earnings

*Estimate and Actual numbers represent Earnings Per Share in US Dollars


HTB: HomeTrust Bancshares
Q3 2025
Before Market Open
Estimate: 0.870
Actual: N/A

BCS: Barclays
Q3 2025
Before Market Open
Estimate: 0.540
Actual: 0.560

TECK: Teck Resources
Q3 2025
Before Market Open
Estimate: 0.390
Actual: 0.552

Today’s Economic Dates

4:00 PM - Fed governor Michael Barr speaks - N/A

Parting Thoughts

“The goal of a successful investor is not perfection but consistency.”

– Benjamin Graham

Sourced in: Investing Wisdom Quotes by The Robust Trader.

Disclaimer

TradeZero America, Inc., a United States broker dealer, registered with the Securities and Exchange Commission (SEC) and member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC); TradeZero, Inc., a Bahamian broker dealer, registered with the Securities Commission of the Bahamas ; TradeZero Canada Securities ULC, a Canadian broker dealer, member firm of Canadian Investment Regulatory Organization (CIRO) and member of the Canadian Investor Protection Fund (CIPF); and TradeZero Europe B.V., a Dutch broker dealer, authorized and regulated by the Dutch Authority for the Financial Markets (AFM) (collectively, the “TradeZero Broker Dealers”).

TradeZero Broker Dealers offer self-directed electronic securities trading to their customers. TradeZero Broker Dealers do not provide financial or trading advice and do not make investment recommendations to their customers. This communication does not constitute an offer to sell or a solicitation to buy any security or instrument which it may reference. There is a risk of loss in online trading of securities including equities and options. Trading on margin is for experienced investors whereby the loss can be greater than your initial investment. Likewise, short selling as a securities trading strategy is extremely risky and can lead to potentially unlimited losses. Options trading is not suitable for all investors as it can involve risk that may expose investors to significant losses. Please read the Characteristics and Risks of Standardized Options, also known as the Options Disclosure Document (ODD) at OCC.

If you have any specific questions about TradeZero's brokerage services, please reach out to the TradeZero Broker Dealer servicing your jurisdiction.