Netflix (NFLX) shares are faltering in premarket trading, despite “solid” second quarter earnings.
The streamer delivered beats on both profit and sales, and upped its full-year revenue guidance in its report late Thursday.
Some on Wall Street had flagged Netflix’s lofty valuation going into the print, Yahoo Finance’s Allie Canal reports.
Bloomberg Intelligence senior media analyst Geetha Ranganathan told Yahoo Finance that the stock was priced to perfection heading into the report.
“It was a really solid print,” Ranganathan said in reaction to the earnings. “The big thing that investors were really focused on was commentary for the rest of the year, and they delivered there as well.”
Ranganathan also noted that while the operating margin was also solid, it was “maybe not spectacular.”
“I think investors were looking for something a little but more here,” she said. “So it was originally forecast at 29% for the full year operating margin — they just took that up a smidge to 29.5%. I think investors were looking somewhere in the range of 30%-31%.”
