Netflix Whiffs on Guidance, Schwab Prints Records, and the Internet Won't Shut Up About Either

$NFLX had the audacity to post a genuinely good quarter — EPS of $1.23 (double year-ago), revenue of $12.25B beating estimates, and free cash flow of $5.1B vs. a $2.7B estimate — and then immediately ruin it with Q2 guidance. EPS guidance of $0.78 vs. $0.84 expected and operating margin of 32.6% vs. 34.4% street estimate sent shares down ~7-9% after-hours. Oh, and co-founder Reed Hastings announced he's leaving the board. Bloomberg's Closing Bell coverage noted heavy content amortization from sports deals (MLB, boxing) is the main culprit — Reddit's r/investing is less forgiving, basically treating the guidance miss like a personal betrayal.

Meanwhile, $SCHW printed record Q1 earnings, record revenue growth, and record new assets with every business segment up double digits year-over-year — and shares still fell ~6.5% on a slight revenue miss. A 39% year-over-year surge in daily average trades in March shows retail is very much alive, and the imminent launch of spot Bitcoin and Ethereum trading could be a sleeper catalyst. X finance Twitter is torn between calling it a screaming buy and complaining about the miss like it personally wronged them.

Two companies, two totally different problems, one universal truth: the street will always find something to sell you on.