Netflix, Uber, BP, Coinbase and Burberry

Shares in Netflix (NFLX) were in the red ahead of the US opening after the streaming giant reported a modest beat-and-raise earnings report overnight.

For the second quarter, Netflix (NFLX) saw a 16% increase in revenue, reaching $11.08bn (£8.24bn). Net profit surged by 46%, amounting to $3.1bn. These figures slightly exceeded the company's initial guidance for the period.

The company also raised its full-year revenue forecast, now expecting between $44.8bn and $45.2bn, up from a prior range of $43.5bn to $44.5bn. The upward revision was driven by the weakening US dollar relative to other currencies, as well as “healthy” member growth and an increase in advertising revenue, Netflix (NFLX) said in a statement.

Netflix (NFLX) revealed that this would be the second consecutive quarter it would not release specific subscription data updates.

“Year-over-year revenue growth was primarily a function of more members, higher subscription pricing and increased ad revenue,” the company said in a statement.

However, it warned that “operating margin in the second half of 2025 will be lower than the first half due to higher content amortisation and sales and marketing costs associated with our larger second half slate”.

Dan Coatsworth, investment analyst at AJ Bell (AJB.L), said: “Despite the strong numbers, Netflix’s (NFLX) shares pulled back by approximately 1.7% in pre-market trading. Analysts suggested the drop may be attributed to high expectations already priced into the stock, combined with profit-taking and investor caution over the company’s premium valuation.

“Better than expected quarterly results and upgraded full-year revenue and cash flow guidance weren’t enough to keep investors happy.

“Shares in Netflix (NFLX) fell in pre-market trading following the results even though the company is going from strength to strength. Investors took fright at a few points in the update and locked in some profit after the shares doubled in value over the past 12 months.

“Investors didn’t like the fact that the core of its upgraded revenue guidance was foreign-exchange related rather than demand-driven. It is benefiting from the weakening US dollar relative to most other currencies.

“Full-year margin guidance implies that the uplift in second quarter margins won’t carry through to the second-half period. That’s because it has some big releases on the schedule, including new series of Stranger Things and Wednesday, and it plans to market them heavily.

“Netflix (NFLX) is betting that extra marketing spend could lead to a big uplift in customer numbers. This isn’t a gamble; it’s a calculated ploy that could yield big results.

“Member growth already improved more than expected at the end of the second quarter, and advertising-related income looks interesting.

“Netflix (NFLX) plans to spend big bucks to strengthen its advertising sales infrastructure and capabilities. Many investors don’t like it when money is going out the door rather than coming in. In reality, Netflix is spending money today to potentially make a lot more money tomorrow.

Shares in Uber (UBER) were flat in pre-market trading despite its announcement of a partnership to deploy more than 20,000 robotaxis over the next six years as demand for driverless cars kicks into high gear.

As part of the partnership, the ride-hailing company is collaborating with Lucid (LCID), the electric vehicle maker, and Nuro (NURO.PVT), an autonomous vehicle startup. Under the deal, Uber (UBER) will invest $300m in Lucid.

Meanwhile, Nuro (NURO.PVT) will develop the self-driving technology that Lucid (LCID) will integrate into vehicles to supply Uber (UBER) with robotaxis throughout the duration of the partnership, with Nuro also set to receive a multi-hundred-million-dollar investment.

Lucid’s (LCID) stock surged 36% on Thursday following the announcement.

The companies plan to launch the robotaxis in a major US urban hub next year. Over the course of six years starting in 2026, Uber (UBER) will acquire and deploy more than 20,000 Lucid (LCID) Gravity SUVs, each equipped with Nuro’s (NURO.PVT) autonomous vehicle (AV) technology, according to a statement from the three companies.

“We’re thrilled to partner with Nuro (NURO.PVT) and Lucid (LCID) on this new robotaxi programme, purpose-built just for the Uber (UBER) platform, to safely bring the magic of autonomous driving to more people across the world,” said Uber CEO Dara Khosrowshahi in a statement.

Shares in BP (BP.L) were higher in early morning trade as the oil major took another step in its strategic pivot back to oil and gas by agreeing to sell its US onshore wind business to LS Power.

The wind business operates nine onshore wind energy assets across seven US states, all of which are grid-connected and provide power to customers. The wind farms are all operational and have a combined capacity of 1.7GW, of which BP (BP.L) owns 1.3GW.

After completion of the deal, which is expected before the end of the year, BP Wind Energy will form part of LS Power’s subsidiary Clearlight Energy, increasing the North American energy group’s operating fleet to about 4.3GW.

The move comes as BP (BP.L) seeks to streamline its business and refocus on its core oil and gas operation.

William Lin, BP’s (BP.L) executive vice president for gas and low carbon energy, said: “We have been clear that while low carbon energy has a role to play in a simpler, more focused bp, we will continue to rationalise and optimise our portfolio to generate value.

“The onshore US wind business has great assets and fantastic people, but we have concluded we are no longer the best owners to take it forward.”

Coinbase (COIN), the largest US crypto exchange, saw its shares climb as the US House passed two major pieces of legislation designed to bring structure to digital asset markets, a move investors interpreted as a step toward long-awaited regulatory clarity.

Coinbase’s (COIN) shares gained 3.2% during the session, closing above $410 for the first time, pushing the company’s market cap above $100bn. The stock further increased in pre-market trading, reaching $418.

This surge came after the House passed the Clarity Act, which addresses crypto market structure oversight, and the Genius Act, which lays out a framework for regulating stablecoins. The stablecoin bill, which already cleared the Senate last month, is now poised for potential signing into law.

Coinbase (COIN), which offers futures trading in the US and spot and perpetual futures products outside the US, stands to benefit significantly from the passage of these bills.

“It’s really urgent for us to get it settled so that investors can invest in the sector, and that tokens that are issued can be traded on our platform,” Faryar Shirzad, Coinbase’s (COIN) chief policy officer, said on Wednesday.

The stablecoin market, currently valued around $240bn, is projected to see substantial growth, with some high-end estimates forecasting a market size of $1tn or more in the coming years. Coinbase (COIN) also holds a stake in Circle (CRCL), the largest US stablecoin issuer.

Bitcoin (BTC-USD) was up by 1% to $119,852 at the time of writing.

Shares in Burberry (BRBY.L) were higher in London as the luxury fashion brand reported a smaller-than-expected drop in sales, signaling early signs of progress under new CEO Joshua Schulman’s turnaround plan.

For the 13 weeks to June 28, retail revenues fell 6% to £433m, compared with the same period a year earlier, with currency fluctuations contributing to the decline. However, this figure reflects a slowdown in the company's sales downturn as Burberry works to reverse its fortunes after facing pressure from weaker luxury spending.

Last November, the brand launched a £40m cost-cutting programme after reporting its first loss, and in May, it unveiled plans to cut around 1,700 jobs worldwide over the next two years as part of the restructuring.

In its fresh update, Burberry (BRBY.L) said it has made some progress in its transformation efforts but is still in the “early stages” of the potential turnaround.

The company said: “In the first half, we are continuing to prioritise investment and expect to see the impact of our initiatives build as the year progresses.”

It pointed towards efforts to simplify its operations and improve productivity in a bid to improve profit margins.

In the latest quarter, Burberry (BRBY.L) said there were improvements across its main regions, amid strong sales of “outerwear and scarves”.

Key to Burberry’s recent success has been its appeal to a diverse set of consumers, with festivalgoers helping drive sales. Burberry has targeted younger, more trend-conscious luxury shoppers with pop-up shops at music festivals featuring DJ sets and activations in shopping malls.

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Comparable retail sales grew by 1% in Europe, the Middle East, India and Africa (EMEIA) as positive local spending helped to offset declines among tourists.

Meanwhile, its Americas business reported growth of 4% for the quarter.

However, it said sales in Greater China fell 5% for the quarter, while its Asia Pacific division saw a drop of 4%, driven by a “challenging performance in Japan”.

Adam Vettese, market analyst for eToro said: “Burberry’s (BRBY.L) first-quarter results show the iconic British brand may finally be turning a corner or at least buttoning up its turnaround efforts. Comparable store sales dipped just 1%, far better than expected, and a marked improvement from last year’s sharp declines.

“The market has received it well with shares up in early trading, as signs of turnaround efforts to recover Burberry’s brand identity are beginning to show.

“The uptick today shows more coherence in execution and product strategy. It’s not a complete transformation yet, but if the team can build on this momentum, Burberry (BRBY.L) could be back in style with both consumers and investors before long.”

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