Netflix Q1 Earnings Preview

As the
closing bell approaches, all eyes are turning to Netflix, the streaming giant,
poised to release its latest financial report. With share prices hovering
around the same level for the past month, can the data dump boost the company’s
stock?

Analysts
are optimistic about Netflix’s revenue and earnings, expecting growth compared
to both the previous quarter and the same period last year. Additionally,
there’s anticipation surrounding Netflix’s partnership with TKO Group Holdings to bring
WWE content to its platform, marking a significant expansion into live sports.

Projections
put Netflix’s revenue at $9.26 billion, up 13% from the same quarter last year,
with earnings per share expected to reach $4.68, a significant increase from
$3.06 a year ago. Analysts are eyeing adjusted profits of $2.07 billion.

The big
question mark, however, hangs over subscriber growth, with estimates ranging
widely. Netflix itself has projected anywhere between 1.8 million and 13.1
million new subscribers, based on previous quarters’ performances.

After a
dip in 2022, Netflix saw a resurgence in subscriber numbers in 2023, partially
attributed to cracking down on password sharing. Despite
some backlash from users, the company’s subscriber base grew by 12% in the
fourth quarter of 2023, reaching 260.28 million paid memberships worldwide.

The
upcoming earnings report is also expected to shed light on the WWE deal, which
will see Netflix broadcasting the popular “Raw” program starting in
2025. This move into live sports content represents a significant growth
opportunity for Netflix, signaling its ambition to diversify its offerings.

The
10-year partnership with TKO Group Holdings, which also owns UFC, positions
Netflix as a major player in the live-streaming entertainment landscape. The
exclusive rights to air “Raw” in the US, Canada, UK, and Latin
America underscore Netflix’s commitment to expanding its audience and content
library.

Investor
expectations are high, especially given the recent volatility in Netflix stock. Despite short-term
fluctuations, the company’s shares have soared by over 80% in the past year,
reflecting confidence in its long-term prospects.

However,
Netflix’s earnings report comes at a time of uncertainty in the broader market,
with tech stocks facing headwinds amid rising US
bond yields and concerns about inflation. Netflix’s results will be closely
watched as a barometer of sentiment towards big tech companies, potentially
shaping market trends in the coming weeks.

This article was written by FL Contributors at www.forexlive.com.