Netflix (NFLX) faces high expectations as it reports fiscal second quarter earnings
Netflix (NFLX) reported its fiscal second quarter earnings on Thursday after market close, with investors eagerly awaiting the results as the stock flirts with record highs.
Morgan Stanley analyst Benjamin Swinburne expressed optimism ahead of the report, stating, “For NFLX shares, much is priced in but we remain bullish given the still large opportunity for growth ahead.”
The company’s foray into sports and live events, as well as its ad tier gaining traction, has led to a 33% increase in shares since the start of the year. However, the stock’s recent run-up has caused some apprehension on Wall Street.
Citi analyst Jason Bazinet maintained a Neutral rating and $660 target price, cautioning about the firm’s Q2 2024 release.
According to Bloomberg consensus estimates, Wall Street expects Netflix to report revenue of $9.53 billion, EPS of $4.74, and net subscriber additions of 4.7 million.
In May, Netflix secured streaming rights to two NFL games and announced significant growth in its ad tier, reaching 40 million global monthly active users.
Despite its success, concerns have been raised about long-term subscriber growth, competition from larger rivals like YouTube and Prime Video, and the potential impact of AI tools on the premium video market.
Analysts have differing views on the ad tier’s future revenue contribution, with Bank of America’s Jessica Reif Ehrlich projecting a material impact by 2025.
As Netflix prepares to release its earnings report, expectations remain high amid the stock’s recent performance. Analysts continue to monitor the company’s growth drivers and competitive landscape.
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