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Streaming Stocks DIS, ROKU Get Boost From Netflix Earnings

  • Netflix (NFLX) released earnings results yesterday that were good enough to satisfy investors.
  • This put the market in an optimistic mood about streaming stocks in general.
  • Consequently, Disney (DIS) stock and Roku (ROKU) stock rose in early trading today.
DIS stock ROKU stock - Streaming Stocks DIS, ROKU Get Boost From Netflix Earnings

Source: Proxima Studio / Shutterstock

Sometimes, a company’s quarterly results don’t have to be great. It might be a relief if the data is just good enough. Case in point: Netflix (NASDAQ:NFLX) described its second-quarter 2022 membership growth as “better-than-expected.” This seems to have put investors in an optimistic mood concerning streaming stocks. As a result, Disney (NYSE:DIS) stock and Roku (NASDAQ:ROKU) stock headed higher this morning.

Netflix’s past disappointments put investors in a jittery mood as the company prepared to release its quarterly earnings yesterday. Surely, some traders wondered whether Netflix would post a huge loss in the platform’s subscriber count.

It must have been a relief, then, to find out that Netflix only lost around 1 million global subscribers in Q2 2022. The company had predicted that it would lose 2 million subscribers.

Moreover, Netflix reported 8.6% year-over-year (YOY) revenue growth to $7.97 billion. The company also posted quarterly diluted earnings per share (EPS) of $3.20. These data points aren’t necessarily spectacular, but they also aren’t terrible.

What Does This Mean for DIS Stock and ROKU Stock?

In light of Netflix’s decent quarterly results, NFLX stock got a 3.5% boost this morning. This seems to have had a positive effect on related streaming names. In particular, DIS stock spiked 3% and ROKU stock ramped up 6%.

Perhaps, Netflix’s optimism was enough to bolster Disney’s and Roku’s investors. Netflix’s shareholder letter assured: “We’re confident and optimistic about the future.” Furthermore, the company anticipates adding 1 million subscribers in this year’s third quarter.

It might seem strange that investors of competing companies would cheer Netflix’s results. Yet, optimism can be contagious. They might look at Netflix’s data and be encouraged to load up on DIS stock and ROKU stock in anticipation of better-than-expected results.

Not that everyone is impressed, mind you. For instance, analysts at KeyBanc warned that they “see more questions than answers in Netflix’s 2Q report.” Still, today the steaming-sector bulls are charging ahead. Going forward, they might have great — or at least decent — expectations for Netflix, Disney and Roku.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.


Article printed from InvestorPlace Media, https://investorplace.com/2022/07/streaming-stocks-dis-stock-roku-stock-get-boost-from-netflix-earnings/.

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