News
Friday, July 18, 2025
What’s happening: Shares of Netflix declined in after-hours trading on Thursday, following the release of the company’s quarterly results.
What happened: The streaming giant reported better-than-expected sales and earnings for its second quarter.
Netflix also raised its full-year revenue forecast.
How were the results: The Los Gatos, California-based company reported low double-digit growth in revenues for its second quarter.
Why it matters: Netflix managed to post higher revenue and operating margins due to growth in memberships, price hikes and growth in advertising revenue.
Its operating margins were 34% during the second quarter, which also topped the company’s outlook.
All of the company’s regions recorded revenue growth in the second quarter, with the UCAN region generating 15% year-over-year growth, accelerating from the previous quarter’s 9%. Revenues from the EMEA region surged 18% to $3.54 billion, while APAC revenues jumped 24% to $1.31 billion.
Netflix said several series and movies recorded strong performances during the latest quarter, especially the third season of Squid Game, which has 122 million views, the sixth highest in the company’s history. Netflix subscribers overall watched 95 billion hours of content during the first half of 2025.
Management guided to revenues of $11.526 billion, representing 17% year-over-year growth, and earnings of $6.87 per share.
Netflix also raised its full-year revenue forecast from $43.5-$44.5 billion to $44.8- $45.2 billion. The company guided to operating margins of 29.5% for the year.
How shares responded: Netflix’s shares slipped 1.9% to $1,250.30 in the after-hours trading session, following the release of quarterly results, after gaining around 1.9% during the regular trading hours on Thursday. The stock has jumped more than 48% over the past six months.
What to watch: Investors will continue monitoring upcoming content releases, with Wednesday, Happy Gilmore 2, Stranger Things, and the Canelo vs. Crawford boxing match, scheduled for release in the second half of the year.
Context: The JPY/USD forex pair gained this morning as investors digested the latest inflation report.
Details: Headline inflation in Japan fell to 3.3% in June, from 3.5% in the previous month. Japan’s core consumer price index also rose 3.3% year-over-year in June, in-line with market estimates but remained above the Bank of Japan’s 2% target for the 39th straight month.
This sparked speculations of Japan’s central bank beginning to tighten its monetary policy.
The BOJ had held its benchmark interest rate at 0.5% during its meetings in March, May, and June, after increasing its key short-term rate by 25bps in January.
Meanwhile, data released on Wednesday showed that Japan’s trade surplus narrowed in June and came in short of market estimates as exports declined for the second month and imports edged higher. The latest figures added to the worries related to the impact of tariffs and the country’s economic outlook.
The US has announced a new 25% tariffs on Japan’s goods, which is scheduled to take effect on August 1. Meanwhile, Japan is expected to hold an Upper House election on Sunday.
Weakness in the US dollar lent support to the JPY/USD forex pair. The US dollar index, which measures the greenback’s performance versus a basket of major peers, fell around 0.3% to 98.47 this morning.
The JPY/USD pair rose over 0.1% to 148.43 this morning, while the Nikkei 225 index slipped 0.22% to 39,812.17.
What to watch: Investors await the release of economic data on manufacturing, services and composite PMI from Japan next week. The au Jibun Bank Japan manufacturing PMI, which rose to 50.1 in June from May’s reading of 49.4, is expected to rise further to 50.3 in July.
The au Jibun Bank services PMI is projected to decline to 51.3 in July from 51.7 in the previous month. Analysts expect the au Jibun Bank composite PMI to fall to 50.9 in July, from 51.5 in June.
Other Markets: European indices closed higher on Thursday, with the FTSE 100, DAX 40, CAC 40 and STOXX Europe 600 Index up by 0.52%, 1.51%, 1.29% and 0.96%, respectively.
The US and Germany have reached an agreement to supply Ukraine with weapons to protect cities from nightly attacks by Russia. The news sent the safe-haven US dollar index lower in forex trading this morning.
The US Commerce Department announced a 93.5% preliminary anti-dumping duty on China’s graphite imports, exerting pressure on the CNY/USD forex pair.
Argentina’s trade surplus shrank to $0.906 billion in June, from $1.88 billion in the year-ago month. The latest reading coming in above market expectations of $0.681 billion sent the ARS/USD pair higher in forex trading this morning.
Canada’s CFIB Business Barometer long-term index climbed 3.4 points to 50.9 in July. This being the highest reading since January lent support to the CAD/USD forex pair.
US initial jobless claims declined by 7,000 to 221,000 in the second week of July. The figure coming in better than market estimates of 235,000 sent the Dow Jones index higher by more than 200 points on Thursday.
Eurozone’s current account (1200 UAE Time) and construction output (1300 UAE Time), Italy’s construction output (1200 UAE Time) and current account (1300 UAE Time), Spain’s balance of trade (1200 UAE Time), India’s bank loan growth (1530 UAE Time), deposit growth (1530 UAE Time) and foreign exchange reserves (1530 UAE Time), Turkey’s foreign exchange reserves (1530 UAE Time), as well as US building permits (1630 UAE Time), housing starts (1630 UAE Time), Michigan consumer sentiment (1800 UAE Time), Michigan consumer expectations (1800 UAE Time), Michigan current conditions (1800 UAE Time), Michigan inflation expectations (1800 UAE Time), Baker Hughes oil rig count (2100 UAE Time) and Baker Hughes total rigs count (2100 UAE Time).