Deepwater Asset Management's managing director Gene Munster noted Netflix Inc.'s (NASDAQ:NFLX) late reference to AI during the company's earnings call, saying that the streaming behemoth doesn't have AI at its core.

What Happened: Munster took to X, formerly Twitter, on Thursday, and said that it took 27 minutes for the term "generative AI" to be mentioned during the Netflix earnings video.

He noted that the company's approach to AI was largely as expected, with an emphasis on enhancing targeting and improving the tools for superior content creation.

Munster's main takeaway from the call was that Netflix is "not an AI company." This statement implies that despite Netflix's use of AI for content enhancement and targeting, it does not constitute the heart of its business model or strategy.

Why It Matters: In its second-quarter earnings report, Netflix reported revenue of $9.56 billion, a 16.8% increase year-over-year, beating a Street consensus estimate of $9.53 billion, according to data from Benzinga Pro.

Netflix is projecting third-quarter revenue to reach $9.73 billion, marking a 13.9% increase from the same period last year. The guidance for the third quarter also includes an expected earnings per share of $5.10.

NFLX Price Action: Netflix shares closed Thursday's session down 0.68% at $643.04. In after-hours trading, the company's shares declined further to $641.89 at the time of writing.

Check out more of Benzinga's Consumer Tech coverage by following this link.

• Days After Elon Musk Deemed University Of Tokyo's Idea 'Pointless,' Scientists Develop Smiling Robot With Living Skin

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.