Netflix Q3 Revenue Up 17% as Generative AI Boosts Production
Netflix reported Q3 revenue of $11.51 billion, up 17% year-over-year, driven by record ad sales. Earnings per share missed at $5.87 due to a surprise 10% Brazilian tax on cross-border payments, sending the stock down 7% in after-hours trading. The company is embedding generative AI across production, design and content discovery. Executives showcased AI tools for de-aging in Happy Gilmore 2 and set design in Billionaires’ Bunker. CEO Ted Sarandos stressed that Netflix generative AI augments creative talent rather than replaces it. Netflix reaffirmed subscription pricing and forecast full-year revenue of $45.1 billion, up 16%, with an adjusted operating margin of 29%. Crypto traders should note growing demand for AI infrastructure and its potential spillover to tech and chip-maker equities.
Neutral
This news focuses on Netflix’s financial results and its rollout of generative AI in content creation. There is no direct linkage to any specific cryptocurrency’s price or network fundamentals. Although the AI infrastructure demand may benefit tech and chip equities, crypto traders are unlikely to see immediate or significant price impact from this update alone.