As the closing bell approaches, all eyes are on Netflix, the streaming giant, as it prepares to release its latest financial report. With stock prices hovering around the same level for the past month, can the data leak boost the company’s stock?
Analysts are optimistic about Netflix’s revenue and profits, expecting growth compared to the previous quarter and the same period last year. Additionally, Netflix’s partnership with TKO Group Holdings to bring WWE content to its platform is expected, marking a significant expansion in live sports.
Projections put Netflix’s revenue at $9.26 billion, up 13% from the same quarter last year, with earnings per share expected at $4.68, a significant increase from $3.06 a year ago. Analysts are projecting adjusted profits of $2.07 billion.
The big question mark, however, hangs over the growth in the number of subscribers, with very variable estimates. Netflix itself projects between 1.8 million and 13.1 million new subscribers, based on performance in previous quarters.
After a decline in 2022, Netflix saw a resurgence in subscriber numbers in 2023, partly attributed to a crackdown on password sharing. Despite some backlash from users, the company’s subscriber base grew 12% in Q4 2023, reaching 260.28 million paid subscriptions worldwide.
The upcoming earnings report is also expected to shed light on the deal with WWE, which will see Netflix broadcast the popular program “Raw” starting in 2025. This shift toward live sports content represents a significant growth opportunity for Netflix , signaling its ambition to diversify its activities. 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. Exclusive streaming rights to “Raw” in the United States, Canada, United Kingdom 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 more than 80% over 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 U.S. bond yields and concerns about inflation. Netflix’s results will be closely watched as a barometer of sentiment toward big tech companies, likely to shape market trends in the weeks to come.
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