Trading Day – Netflix shares surge after earnings beat

Netflix shares surge 14% in after-hours trading after beating earnings expectations and higher-than-expected subscriber growth.

Netflix added 2.4 million subscribers, more than double what it projected last quarter. It showed particularly strong subscriber growth in the Asia-Pacific region.

US markets continued their momentum this week, albeit at a slower pace, as the S&P 500 climbed 1.1% and the Nasdaq closed only 0.8% higher after opening strong.

The Nikkei 225 is up 0.6% in early morning trade, while the Hang Seng is down 1.2%.

In other news, BHP Group and DRD Gold reported stable operations for the quarter.

Here is the biggest news of the day.

• Netflix shares surged 14% in after-hours trading after the company beat earnings and revenue expectations for the third quarter. Netflix added 2.4 million subscribers, more than double what it projected last quarter. It showed particularly strong subscriber growth in the Asia-Pacific region. It also revealed plans to crack down on password sharing next year. Earnings per share (EPS) came in at $3.10 compared to expectations of $2.13, while revenue reached $7.9 billion compared to expectations of $7.8 billion.

• BHP Group reports stable operations for the quarter. In an operational update the company noted that copper production is up 9% compared to last year, but down 11% from the previous quarter due to lower feed grades at Escondida and planned maintenance at Olympic Dam. Iron ore production is up 3% from last year, with strong operational performance at Western Australian Iron Ore (WAIO) offsetting planned maintenance. Nickel production climbed 16% due to unplanned smelter downtime in the previous period. Both energy and metallurgical coal production decreased significantly due to wet weather. BHP Group’s Jansen Stage 1 potash project is progressing to plan, with first production planned for 2026.

• DRD Gold operations were relatively flat for the quarter. Gold production and sales remained virtually unchanged from the previous quarter. Weaker gold prices were offset by a similar weakening of the Rand, to leave the average price received relatively flat on a Rand basis. Despite this, adjusted EBITDA decreased 19% to R386 million.

• Quilter assets under management (AUM) fell 2% to £96.9 billion, despite net inflows of £0.2 billion for the quarter.

• RMB Morgan Stanley has increased its stake in Massmart to nearly 5.3%.