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Netflix Crushes Expectations
🎥 Netflix crushed earnings as the number of cord-cutters continues to grow.
Ankit Sinha
July 18, 2025
Silver banana goes to…
In this issue of the peel:
💰Earnings and economic data are both doing their part to keep equities lifted.
🎥 Netflix crushed earnings as the number of cord-cutters continues to grow.
📈 The Genius Act for regulating stablecoins passed through the House and is on Donald Trump’s desk to sign.
Market Snapshot
Student Spotlight
A+ Equity Research Report 📊
Looking for a stellar example of what makes an equity research report stand out?
One of our WSO Academy students, Harsh Sharma, put together an impressive deep dive on Snowflake, covering valuation, catalysts, and key risks with the kind of insight that turns good pitches into great ones. Check out the report here:
Banana Bits
Netflix beat earnings and grew revenue 16% as it tries to differentiate itself in the streaming wars.
Opendoor stock saw a nice bump as retail investors started to pile in.
Trump wants Coca-Cola to use real sugar cane while Coke fights for high fructose corn syrup.
Cr*pto bros have been catching W’s all year. This time, it comes via the passing of the new Genius Act.
Homebuilders are slashing prices at the highest rate in 3 years.
Will we or won’t we see a new Federal Reserve Chair by the end of the year?
The Daily Poll
Would you trust a bank-issued stablecoin? |
Previous Poll:
Should the Fed stay fully independent?
Yes: 84.0% // Mostly: 5.9% // Unsure: 3.4% // Nah, needs oversight: 6.7%
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Macro Monkey Says
Genius Act
It seems like the cr*pto boys have been getting weekly W’s since Trump got elected.
This week, it comes in the form of the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins), which passed through the Senate and the House and is sitting on the President’s desk to be signed as we speak. It’s a pretty big milestone, highlighting how far cr*pto has come.
The bill establishes a regulatory framework for stablecoins, requiring issuers to maintain a 1:1 reserve with low-risk assets and adhere to anti-money laundering protocols.
The GENIUS Act has garnered bipartisan support, with a 308-122 vote in the House. It allows banks and financial institutions to issue their own stablecoins, potentially expanding the stablecoin market significantly.
Major financial institutions like JPMorgan Chase and Bank of America have expressed interest in launching their own stablecoins, signaling institutional momentum.
While proponents view the act as a step toward mainstream adoption of stablecoins and U.S. leadership in digital finance, critics raise concerns about potential conflicts of interest, especially given President Trump's family's involvement in the cr*pto industry.
The passage of the GENIUS Act is part of a broader legislative push, including the CLARITY Act and the Anti-CBDC Surveillance State Act, aiming to provide comprehensive regulation for digital assets.
As the cr*pto market evolves, the GENIUS Act represents a significant development in the integration of digital assets into the U.S. financial system.
Career Corner
Question
What do I bring to a superday? A backpack? A folder with my profile, paper, and pen?
Answer
At a minimum, a folio with paper, pen, and extra copies of your resume. The backpack is fine; just leave it in the reception area. Don’t drag it with you to every interview.
Head Mentor, WSO Academy
Thought Banana
Streaming Wars
Netflix just dropped its Q2 2025 earnings report, and let’s just say it was quite the plot twist. The streaming titan posted a blockbuster $3.1billion in net income, which is up 40%+ year-over-year with EPS at $7.19, surpassing Wall Street’s expectations. Revenue also jumped 16% to $11.1billion for the quarter.
Coming into earnings, analysts had raised concerns about NFLX’s recent surge to a record high, fearing that the stock may have run ahead of the company’s growth prospects. This beat couldn’t come at a better time.
In the ongoing streaming wars, Netflix continues to hold its ground. The final season of "Squid Game" alone garnered 122 million views, contributing significantly to the quarter's success.
Netflix is also expanding into live events, including a Christmas Day NFL game and high-profile boxing matches, with the aim of attracting a broader audience and boosting its advertising revenue.
With a raised full-year revenue forecast of up to $45.2 billion and plans to double ad revenue in 2025, Netflix is setting the stage for continued growth. As streaming evolves, Netflix seems poised to remain a leading player, delivering content that keeps viewers ( and hopefully investors) coming back for more.
The Big Question: Is Netflix’s dominance sustainable—or will rising competition eventually flip the script?
Banana Brain Teaser
Previous
A store currently charges the same price for each towel that it sells. If the current price of each towel were to be increased by $1, 10 fewer of the towels could be bought for $120, excluding sales tax. What is the current price of each towel?
Answer: $3
Today
If 75% of a class answered the first question on a certain test correctly, 55% answered the second question on the test correctly, and 20% answered neither of the questions correctly, what % answered both correctly?
Send your guesses to [email protected]
I made a killing in the stock market. My broker and I are both broke.
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Happy Investing,
Chris, Vyom, Ankit, Colin & Patrick