Tag

Operating Margins

All articles tagged with #operating margins

businessfinance2 years ago

"Tesla Q4 Earnings: Balancing Profitability, Delivery Targets, and Investor Concerns"

Tesla's Q4 earnings are expected to show a decline in margins due to aggressive price cuts and falling average selling prices, which are outpacing production costs. The company's operating margins are projected to slip to the low 7% range, raising concerns for investors. The focus on volume growth through price cuts has impacted margins, leading to a significant decline in forward earnings estimates. The article also discusses the technical analysis of Tesla's stock and the potential impact on its future performance.

finance2 years ago

Netflix Stock Drops as CFO Warns of Soft Margins and Potential Impact of Hollywood Strikes

Netflix stock fell 2% after CFO Spencer Neumann's comments at a conference, where he warned of softer margins and stated that the ad tier is not yet material to overall revenue. Neumann expects operating margins to be in the range of 18% to 20%, below consensus estimates. He emphasized the need to scale the reach of the ad tier and better monetize it. Neumann also expressed concern over the ongoing Hollywood strikes and their impact on the business. Analysts have adjusted their revenue forecasts and lowered ARPU growth expectations. Despite this, Pivotal Research maintained a Buy rating on the stock with a $600 price target.