Crushing Netflix Results

In our recent blog post (Netflix Strikes Back) we were adamant that password sharing crackdowns were accretive to both subscriptions and over time to ARM (Average Revenue per Membership) as well.
After a series of negative comments from the Street, Netflix had significantly underperformed the market into earnings.
Today’s strong earnings report, with Netflix’s stock surging by 16%, not only exceeded expectations but also aligned closely with occam’s prediction.