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News
Wednesday, October 22, 2025
What’s happening: Shares of Netflix fell in after-hours trading on Tuesday following the company’s release of its third-quarter results.
What happened: The streaming giant reported weaker-than-expected earnings for the latest quarter.
Shares fell despite Netflix issuing its guidance slightly above market expectations for the rest of the year.
How were the results: The company reported double-digit revenue growth for the third quarter.
Why it matters: Netflix is facing tough competition from YouTube, Disney+ and Amazon’s Prime Video.
The company, with a global customer base of more than 300 million, is looking to expand in new segments, including advertising and videogames.
Netflix said membership growth, higher pricing and growth in advertising sales provided a boost to its overall revenues in the latest quarter.
Operating margins came in at 28% for the quarter, below its guidance of 31.5%. The company attributed this to the current dispute with Brazil’s tax authorities. Excluding the impact of the dispute, the company’s operating margin would have been above its projections.
Netflix reported the highest quarterly view share in the US and UK since the fourth quarter of 2022. The company also had its strongest quarter ever for advertising sales.
The company highlighted key titles in the quarter, including Happy Gilmore 2, Wednesday, Your Majesty from South Korea, and KPOP Demon Hunters.
For the fourth quarter, Netflix guided to revenues of $11.96 billion, up 16.7% year-over-year, higher than market estimates of $11.90 billion. Management projected earnings of $5.45 per share, slightly better than consensus of $5.42 per share.
For the full fiscal year, Netflix guided to revenues of $45.1 billion, up 16% year-over-year.
How shares responded: Shares of Netflix fell 6.5% to $1,160.94 in after-hours trading on Tuesday. The stock had surged 39% year to date.
What to watch: Investors will keep an eye on the current quarter’s content, which is expected to provide further a boost to the company’s overall results. Netflix highlighted content for the fourth quarter as The Diplomat, Stranger Things, Frankenstein, A House of Dynamite, Squid Game: The Challenge Season 2. It also highlighted its upcoming boxing match, Jake Paul vs. Tank Davis and two National Football League games on Christmas for the quarter.
Context: The JPY/USD forex pair rose this morning after recording a sharp decline in the previous session following the announcement of Sanae Takaichi as new Prime Minister.
Details: Investors expect the new PM to follow an expansionary fiscal policy including increased government spending and cuts in consumption tax.
The Bank of Japan is also expected to adopt a cautious stance to further interest rate hikes. Markets have pushed speculations of the next hike to early next year.
On the economic data front, Japan’s trade deficit narrowed to ¥234.6 billion in September, from ¥306.1 billion in the year-ago period. However, the figure missed market estimates of a surplus of ¥22 billion.
Exports climbed 4.2% year-over-year to ¥9,413.7 billion, recording the first growth since April, with the new trade deal with the US easing the impact of tariffs on Japanese goods. Meanwhile, imports rose 3.3% to an eight-month high of ¥9,648.3 billion, the first rise in three months.
Weakness in the US dollar lent support to the JPY/USD pair. The US dollar index, which measures the greenback’s performance versus a basket of major peers, fell around 0.1% to 98.88 this morning.
The JPY/USD forex pair gained 0.2% to 151.63 this morning, while the Nikkei 225 fell around 0.55% to trade at 49,046.42.
What to watch: Data on inflation rate (0330 UAE Time), S&P Global manufacturing PMI (0430 UAE Time) and S&P Global services PMI (0430 UAE Time) from Japan will be released on Friday. Japan’s annual inflation rate, which slowed to 2.7% in August from 3.1% in the previous month, is expected to rise to 2.9% in September.
Analysts expect the S&P Global manufacturing PMI to rise to 48.6 in October from 48.5 in September, while the services PMI is projected to decline to 53 in October from 53.3 in the previous month.
Other Markets: European indices closed higher on Tuesday, with the FTSE 100, DAX 40, CAC 40 and STOXX Europe 600 Index up by 0.25%, 0.29%, 0.64% and 0.21%, respectively.
A US official said that there were “no plans” for a meeting between President Donald Trump and Russia’s President Vladimir Putin “in the immediate future.” The news sent the RUB/USD pair higher in forex trading this morning.
Morocco’s annual inflation rate accelerated to 0.4% in September, from 0.3% in the previous month, exerting some pressure on the MAD/USD forex pair.
The American Petroleum Institute reported that US crude oil inventories fell by 2.98 million barrels in the week ending October 17, compared to a gain of 3.52 million barrels in the previous week, which sent the WTI crude oil prices higher this morning.
Colombia’s trade deficit rose to $2.01 billion in August, from $1.69 billion in the year-ago period, which exerted pressure on the COP/USD forex pair.
India’s infrastructure output rose by 3% year-over-year in September, compared to a 15-month high of 6.5% in the previous month. However, the INR/USD pair rose in forex trading this morning.
South Africa’s inflation rate (1200 UAE Time), Germany’s 7-year Bund auction (1330 UAE Time), US MBA mortgage applications (1500 UAE Time), EIA crude oil stocks change (1830 UAE Time), EIA gasoline stocks change (1830 UAE Time), EIA Cushing crude oil stocks change (1830 UAE Time), EIA distillate stocks change (1830 UAE Time), EIA heating oil stocks change (1830 UAE Time), 17-week Bill auction (1930 UAE Time) and 20-year Bond auction (2100 UAE Time), Mexico’s economic activity (1600 UAE Time), Canada’s 10-year Bond auction (2000 UAE Time), Russia’s industrial production (2000 UAE Time) and PPI (2000 UAE Time), as well as Argentina’s economic activity (2300 UAE Time).
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