Tuesday's Market Minute: Netflix (NFLX) Earnings Preview

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Netflix (NFLX) reports its first quarter results today after the bell. Zacks expects it to report EPS of $2.92 and revenue of $7.49 billion, which would be down from last quarter’s revenue of $7.71B. Investors will be watching the all-important subscriber numbers; BofA Securities is looking for it to add 3 million. However, competition continues to grow, and Netflix isn’t the only prestigious streamer anymore: Apple TV+’s Coda won the Oscar for Best Picture in March, which Netflix has never managed. Netflix also has not introduced ads, like some analysts have called for, to boost revenue, unlike other streamers like Hulu. It has also not moved into sports, like Amazon Prime Video or Disney’s ESPN investments. Instead, it continues to make forays into video games and to spend on content. It also recently raised prices, which could cause it to lose some subscribers as consumer wallets tighten.

In addition to its deep, popular content catalog, Netflix is highlighting subscriber retention and long-term growth opportunities: it claims that 70% of its desktop viewers watch it exclusively, and JPMorgan thinks the company can hit over 300 million subscribers by the end of 2025, up from 221.8 million in the fourth quarter of 2021. Will that be enough to satisfy investors? Or will Netflix be pushed into making significant business changes?

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.