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Hi John, here's what you need to know for October 17th in 3:11 minutes.

🎓 Finimized while checking out the low rates on student loan refinancing at Earnest.

⏳ Keep it brief

Welcome Back, Netflix

What’s Going On Here?

Netflix’s third-quarter profit beat investors’ forecasts late on Wednesday – but their eyes were also trained on its slightly weaker subscriber growth, which might not bode well for the future (tweet this)...

What Does This Mean?

Netflix’s revenue last quarter was roughly what investors predicted, but it added fewer paying subscribers than it promised – falling short in the US, where it’s recently upped prices. And things are only going to get tougher, with rival service Disney Plus launching in November.

Netflix says it’ll add 7.6 million paying subscribers this quarter – lower than the 9 million investors hoped for. And even if the streaming giant does hit its subscriber target, it might need to rely on discount pricing to get viewers to keep watching – which could result in even lower revenue growth.

Why Should I Care?

For markets: All about that subscriber growth.
One of the most important metrics for Netflix is subscriber growth. Subscribers’ fees generate regular and predictable income for the company, and it’s with that money Netflix aims to covers its costs – and eventually pay a dividend to investors in its shares. This income also brings debt investors comfort that Netflix will be able to make its interest payments – risking bankruptcy if it couldn’t – and someday repay the $13 billion it owes. Netflix’s better-than-expected profit, then, could’ve offset worries about slower subscriber growth, explaining the stock’s initial rise on Wednesday.

For you personally: Hope you like Netflix Originals…
Netflix might be cutting back on stand-up comedy, but that doesn’t mean it’s reining in its spend on original content. In fact, it plans to spend as much as $15 billion on shows this year. That’s probably justified: Netflix has revealed its most popular content is indeed homegrown. And as rivals yank heavy-hitters like Friends, Star Wars, and the Marvel movies from its platform, it’ll hope the likes of Stranger Things and 13 Reasons Why are enough to keep your attention…

Homo Slaypiens

What’s Going On Here?

The evolution of ASOS continued with its annual results on Wednesday: the fashion brand’s stock rose almost 30% – even though its profit was 68% lower than a year ago.

What Does This Mean?

Last year wasn’t pretty for ASOS: its stock dropped 40% in December, after the company first warned it’d earn less than investors were expecting. And the fashionista stumbled again throughout the year, in part over logistics issues. Problems at its main European warehouse had a knock-on effect on the region’s deliveries, and disruptions in the US – where ASOS has racked up costs getting its kitten-heeled foot in the door – pushed tearful customers into rival Boohoo’s open arms.

While ASOS still grew its revenue last year, its profit fell markedly. And the company’s not entirely sure how much it’s going to make in the next 12 months, either. So why in the name of Anna Wintour did investors buy its stock?

Why Should I Care?

For markets: Trying out a whole new look.
ASOS announced plans to revamp its management team by hiring execs to oversee growth, people, and strategy. Personnel changes usually don't bother investors, unless a high-profile CEO sashays away. But in ASOS’s case, they might hope new blood will revitalize the company and improve its growth trajectory. And since ASOS also announced that the worst of its logistics issues are now behind it, investors may be hoping the company's profit margin will improve too.

The bigger picture: Low inflation looks good on you.
Data out on Wednesday showed inflation – the rate at which the prices of goods and services increase – was lower than expected in the eurozone last month, and not much higher in the UK. Still-low product prices, then, might’ve helped boost sales for retailers like ASOS. If only that were true in the US too: fresh data released on Wednesday showed September’s retail sales unexpectedly fell for the first time in seven months.

💬 Quote of the day

– Fyodor Dostoevsky (a Russian novelist, short story writer, essayist, journalist and philosopher)