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Snacks / Monday, October 17, 2022

All eyes on Netflix but everyone’s bingeing Tuesday’s earnings, not “Dahmer.” After losing 1M+ subscribers over the past two quarters, Netflix plans to launch a $7/month ad-supported tier next month to revive growth — just weeks before Disney+ plans to launch its own cheaper tier. The commercials, which should average four to five minutes per hour, will cost advertisers big $$ and run on Microsoft tech. Meanwhile, Netflix’s $20B of original-content spending this year could cut into earnings: it expects profits to dip 34% this quarter from last year.

All charged up… Tesla was on a roll last quarter. The EV icon delivered a record 343K vehicles (up 45% from last year) and analysts say it'll likely report $22B+ in third-quarter revenue on Wednesday (which would be up 63%). The accelerators: Tesla hiked prices on all models last quarter, upped production at its Berlin factory, and is ramping up in Shanghai. The speed bump: the record deliveries were below expectations, and there’s a chance Elon’s baby won’t meet its annual target because of logistical snags and high delivery costs.

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