NETFLIX Earning Preview
Traders Thoughts
The selloff in netflix has seen nearly all the "stay at home" pandemic gains erased. But we are back at more familiar levels and much better value. Once the market finds downside support then the relief rally should be quite large.
At these levels the risks are skewed to topside with market mood towards netflix already negative anything that surprises positive will have a bigger effect.
On more negative news it would have to be devastating for dip buyers not to be interested at 2020 lows.
Analyst Thoughts
Netflix is releasing its Q1 earnings report on 04/19/2022 after market close. The report will be for the fiscal quarter ending March 2022. According to Investing.com, the consensus EPS forecast for the quarter is $2.95, down 21.33% from the reported EPS for the same quarter last year. The consensus revenue forecast for the quarter is $7.94 billion, up 10.89% from the reported revenue for the same quarter last year.
Another major piece of data investors will want to pay close attention to is subscriber growth. In the fourth quarter of 2021, Netflix added 8.28 million subscribers, beating analysts’ expectations of 8.19 million. However, this was 220,000 fewer subscribers than Netflix added in the fourth quarter of 2020. In its Q4 2021 report, Netflix also lowered its guidance for the first quarter of 2022, estimating that it will only add 2.5 million subscribers to its platform, significantly below analysts’ previous expectations of 6.93 million.
Investors’ growing concerns surrounding subscriber growth combined with external market pressures, such as high inflation and rising bond yields, resulted in Netflix’s share price plummeting 21.87% after its Q4 earnings release. If subscriber growth is worse-than-expected in its upcoming quarterly earnings report on Tuesday, we could potentially see the share price test its 2020 pandemic low of $290.25.
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“Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, are intended only to be informative, is not an advice nor a recommendation, nor research, or a record of our trading prices, or an offer of, or solicitation for a transaction in any financial instrument and thus should not be treated as such. The information provided does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it. Please be aware, that past performance is not a reliable indicator of future performance and/or results. Past Performance or Forward-looking scenarios based upon the reasonable beliefs of the third-party provider are not a guarantee of future performance. Actual results may differ materially from those anticipated in forward-looking or past performance statements. easyMarkets makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or any information supplied by any third-party."
The selloff in netflix has seen nearly all the "stay at home" pandemic gains erased. But we are back at more familiar levels and much better value. Once the market finds downside support then the relief rally should be quite large.
At these levels the risks are skewed to topside with market mood towards netflix already negative anything that surprises positive will have a bigger effect.
On more negative news it would have to be devastating for dip buyers not to be interested at 2020 lows.
Analyst Thoughts
Netflix is releasing its Q1 earnings report on 04/19/2022 after market close. The report will be for the fiscal quarter ending March 2022. According to Investing.com, the consensus EPS forecast for the quarter is $2.95, down 21.33% from the reported EPS for the same quarter last year. The consensus revenue forecast for the quarter is $7.94 billion, up 10.89% from the reported revenue for the same quarter last year.
Another major piece of data investors will want to pay close attention to is subscriber growth. In the fourth quarter of 2021, Netflix added 8.28 million subscribers, beating analysts’ expectations of 8.19 million. However, this was 220,000 fewer subscribers than Netflix added in the fourth quarter of 2020. In its Q4 2021 report, Netflix also lowered its guidance for the first quarter of 2022, estimating that it will only add 2.5 million subscribers to its platform, significantly below analysts’ previous expectations of 6.93 million.
Investors’ growing concerns surrounding subscriber growth combined with external market pressures, such as high inflation and rising bond yields, resulted in Netflix’s share price plummeting 21.87% after its Q4 earnings release. If subscriber growth is worse-than-expected in its upcoming quarterly earnings report on Tuesday, we could potentially see the share price test its 2020 pandemic low of $290.25.
easyMarkets Account on TradingView allows you to combine easyMarkets industry leading conditions, regulated trading and tight fixed spreads with TradingView's powerful social network for traders, advanced charting and analytics. Access no slippage on limit orders, tight fixed spreads, negative balance protection, no hidden fees or commission, and seamless integration.
“Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, are intended only to be informative, is not an advice nor a recommendation, nor research, or a record of our trading prices, or an offer of, or solicitation for a transaction in any financial instrument and thus should not be treated as such. The information provided does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it. Please be aware, that past performance is not a reliable indicator of future performance and/or results. Past Performance or Forward-looking scenarios based upon the reasonable beliefs of the third-party provider are not a guarantee of future performance. Actual results may differ materially from those anticipated in forward-looking or past performance statements. easyMarkets makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or any information supplied by any third-party."
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