Tuesday's Market Minute: Is "Squid Game" Over-Hyping Netflix Expectations?

Netflix NFLX reports earnings after the bell today, and there are high expectations for its performance and guidance as popular series like The Witcher return, and unexpected breakout hits like Squid Game dominate social media and popular culture for weeks. Zacks estimates Netflix will report earnings per share of $2.56 and revenue of $7.48 billion, but as always, investors will have their eyes on subscriber count.

Several analysts have cited Squid Game, which Netflix said yesterday it expects to bring in $90 million in value, in bullish expectations for subscriber growth. The company is also potentially bolstered by the fact that Disney DIS has delayed several movie release dates including Thor: Love and Thunder due to the pandemic and warned that production slowdowns may impact its own numbers, leaving Netflix the sole content juggernaut.

However, Netflix is and has remained the powerhouse of streaming, with its strong content slates and continual popularity. How many more consumers are really waiting for a new hit before they subscribe? Many households are already subscribed to both Netflix and Disney+; do delays really mean more consumers will flood into Netflix? While the overall streaming market isn’t tapped out yet, investors should keep these questions in mind in case of disappointment.

Image Sourced from Pixabay