Here's How Far Netflix Stock Could Fall After The Streaming Company Reports Earnings

Netflix Inc NFLX shares have jumped 13% over the last month, however, it's still the worst performing stock in the S&P 500 this year. With earnings due after the bell, should investors be concerned?

What To Know: Ritholtz Wealth Management's Josh Brown will be paying close attention to subscriber numbers after Netflix reported a subscriber loss last quarter.

"They probably lost two million subs," Brown said Tuesday on CNBC's "Fast Money Halftime Report."

Netflix guided for continued subscriber losses, so a decline wouldn't come as a surprise, but the magnitude of the losses could be potentially alarming for investors, Brown noted.

"If they lost 3 million subs, the stock is going to violate $185, which has been support," he said. "Or $180 I should say. It will lose that support and nothing will matter."

On the other hand, Brown told CNBC that "Stranger Things" has the potential to reduce some of that churn. When the company has a big streaming hit, historically, it has given a boost to subscriber numbers, he said.

"The programming, in the end, the content — it really does matter," Brown said.

Netflix is set to announce its second-quarter financial results after the market closes. Analysts expect the streaming company to earn $2.96 per share on quarterly revenue of $8.04 billion, according to data from Benzinga Pro.

Related Link: Netflix Stock Dropped After The Last 5 Quarters Of Results: What Are Netflix Earnings Expectations?

Brown reiterated that the subscriber number is what investors want to watch for. He plans to hold the stock as long as Netflix can show that its customers are holding onto their subscriptions. 

"If they blow up tonight, I'll move on," Brown said.

NFLX Price Action: Netflix has a 52-week high of $700.98 and a 52-week low of $162.71.

The stock was up 4.94% at $200.36 at the time of publication.

Photo: courtesy of Netflix.