Tuesday's Market Minute: Previewing Netflix Earnings

Netflix Inc NFLX reports earnings after the bell today, and has a Zacks estimate of $2.13 EPS and $6.39 billion in revenue. Of course, it’s the subscriber gains that’s important to keep an eye on.

Last quarter, Netflix added around ten million subscribers globally, versus around eight million expected—a big add, but how well will they do this time?

While stay-at-home orders have certainly driven demand, Netflix has more competitors than other “stay-at-home winners”: Hulu, HBO, Disney+ DIS, Apple TV+ AAPL, and so on. Several of these have launched this year alone, and while Netflix’s stock price was hurt by their announcements and launch, now those services have had time to build out their portfolio and could be a threat that way.

However, Netflix still has an advantage as the first mover, and I’m also interested in seeing next quarter’s growth with the release of buzzy original projects like Enola Holmes and The Haunting of Bly Manor. Licensed media will also remain a contentious battle since many consumers prefer to re-watch, and Netflix may not be winning on that front against Disney+ and Peacock.

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