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.
