$Netflix(NFLX)$ ‼️🚨‼️🚨‼️🚨‼️🚨‼️🚨
Kia ora Tiger traders - grab your popcorn but don't choke on this News‼️
Netflix (NFLX) Q2 2024 Earnings Preview
Netflix is set to release its second-quarter 2024 earnings on July 18 POST MARKET.
Analysts expect earnings per share (EPS) to come in at $4.74, compared to $3.29 in the same period last year. Revenue is projected to reach $9.53 billion, reflecting a 17% year-over-year increase, according to TipRanks.
Historical Performance and Website Traffic
Netflix has a strong history of exceeding earnings expectations, having surpassed estimates in eight of the past ten quarters. This track record indicates a positive trend in its earnings performance. However check out historical findings for July of each year below...
Additionally, TipRanks' website traffic screener reveals significant growth in traffic to Netflix's site. Visits increased by 27.16% sequentially and 103% year-over-year in Q2. This surge in traffic is a positive indicator of increased user engagement and potential subscriber growth.
Options Trading Insights
Using TipRanks' Options tool, options traders are anticipating a significant move in Netflix's stock price following the earnings report, with an expected 8.41% move in either direction. This indicates high volatility and interest in Netflix's stock around the earnings announcement.
Analyst Ratings
On Wall Street, Netflix holds a Moderate Buy consensus rating based on 19 Buy and 8 Hold ratings over the past three months. The stock has gained 45% over the past year, and the average price target of $689.58 per share implies about a 5% upside potential from current levels.
Comprehensive Analysis on Netflix’s Earnings and Market Impact
Historical Market Dips Triggered by Netflix Earnings
2021:
In 2021, Netflix’s Q2 earnings report on July 20 revealed an EPS of $2.97, which missed the consensus estimate of $3.14. This miss led to a 3.5% drop in after-hours trading and contributed to a broader market dip during this period. The impact was significant due to investor concerns about slowing subscriber growth amid rising competition .
2022:
On July 19, 2022, Netflix reported an EPS of $3.20, surpassing the expected $2.95. Despite the positive earnings, the stock dropped by 8.41% the following day. This decline was driven by worries over long-term subscriber growth and the increasing competitive landscape in the streaming market .
2023:
Netflix’s earnings on July 19, 2023, showed an EPS of $3.29, exceeding the forecasted $2.85. However, the stock still fell by 8.41% post-earnings, indicating market concerns over the company’s ability to sustain growth in a saturated streaming market .
Fun Facts and Analyst Insights
Fun Facts:
• Netflix started as a DVD rental service in 1997 and has since evolved into a global streaming giant.
• The company’s iconic red envelope for DVD rentals became a symbol of its early success.
Analyst Insights:
• According to analysts at TipRanks, Netflix has a strong earnings surprise history, having exceeded earnings estimates in eight of the past ten quarters. This track record indicates a consistent ability to outperform market expectations .
• Analysts highlight that Netflix’s innovative approach, including the introduction of an ad-supported tier, continues to drive its subscriber base and engagement. This move is seen as a strategic response to growing competition and changing consumer preferences .
Market Observations:
• “Netflix’s recent earnings miss underscores the challenges the company faces in maintaining its growth trajectory amid an increasingly competitive streaming landscape,” says a senior analyst at MarketBeat .
• Historical data shows a pattern of significant market movements around Netflix’s mid-July earnings reports, highlighting the company’s influence on broader market trends during this period.
Conclusion
Netflix’s earnings reports have consistently influenced the market, particularly around mid-July each year. The combination of strong historical performance and significant market reactions to earnings results makes Netflix a key player to watch during earnings season. The company’s ongoing innovations and strategic responses to market dynamics will be crucial in shaping its future impact on the market.
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Netflix (NFLX) Q2 2024 Earnings Preview
Netflix is set to release its second-quarter 2024 earnings on July 18, after the market closes. Analysts expect earnings per share (EPS) to come in at $4.74, compared to $3.29 in the same period last year. Revenue is projected to reach $9.53 billion, reflecting a 17% year-over-year increase.
Historical Performance and Website Traffic
Netflix has a strong history of exceeding earnings expectations, having surpassed estimates in eight of the past ten quarters. This track record indicates a positive trend in its earnings performance.
Additionally, TipRanks' website traffic screener reveals significant growth in traffic to Netflix's site. Visits increased by 27.16% sequentially and 103% year-over-year in Q2. This surge in traffic is a positive indicator of increased user engagement and potential subscriber growth.
Options Trading Insights
Using TipRanks' Options tool, options traders are anticipating a significant move in Netflix's stock price following the earnings release. The introduction of an ad-supported tier continues to drive its subscriber base and engagement. This move is seen as a strategic response to growing competition and changing consumer preferences.
Market Observations
"Netflix’s recent earnings miss underscores the challenges the company faces in maintaining its growth trajectory amid an increasingly competitive streaming landscape," says a senior analyst at MarketBeat.
Historical data shows a pattern of significant market movements around Netflix’s mid-July earnings reports, highlighting the company’s influence on broader market trends during this period.
Conclusion
Netflix’s earnings reports have consistently influenced the market, particularly around mid-July each year. The combination of strong historical performance and significant market reactions to earnings results makes Netflix a key player to watch during earnings season. The company’s ongoing innovations and strategic responses to market dynamics will be crucial in shaping its future impact on the market.
Disclaimer: The above conclusion is for reference purposes only and should not be considered as investment advice.
Sources:
London Stocks Seen Opening Higher; ECB Decision, Netflix Earnings Awaited
London Stocks Seen Opening Higher; Markets Await ECB Decision, Netflix Earnings -- Market Talk
Netflix Stock Is Pricey. Earnings Are the Next Big Test. -- Barrons.com
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