"Netflix beat Q4 earnings estimates but the stock dropped 7% anyway, revealing what Wall Street really cares about: future growth, not past performance. The company reported $11.51 billion in revenue with 17% year-over-year growth, but EPS missed by 15.8% at $5.87 versus the $6.97 estimate. A $619 million Brazilian tax dispute crushed margins. Operating margin fell from 28% to 23.9% in guidance. The Warner Bros deal changes the content strategy fundamentally."
"Jensen Huang is denying bubble fears while Citi names NVIDIA its top semiconductor pick. The business fundamentals are extraordinary: 63.2% operating margins, 62.5% revenue growth year-over-year, and $57 billion in quarterly revenue. But insiders are selling. Huang sold 200,000 shares in October at $180-$212. CFO Colette Kress executed systematic selling programs through December and January. The disconnect between public confidence and private actions is stark. NVIDIA is building an ecosystem moat through next-gen cooling partnerships that enable bigger data centers."
Netflix reported $11.51 billion in revenue, up 17% year-over-year, while EPS missed estimates at $5.87 versus $6.97. A $619 million Brazilian tax dispute and guidance that lowers operating margin from 28% to 23.9% pressured profitability. The Warner Bros deal shifts content strategy toward partnerships rather than broad competition, signaling a move from subscriber growth to monetization and efficiency. Reed Hastings bought 375,000 shares at $10.57, indicating insider confidence. Netflix trades at 36.82x earnings on 17% revenue growth, raising questions about maintaining pricing power. NVIDIA delivered 63.2% operating margins and 62.5% revenue growth, fueling an ecosystem moat via next‑gen cooling and infrastructure lock-in, while insiders sold shares amid high multiples.
Read at 24/7 Wall St.
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