However, since the end of April, the trend has been one of consolidation, and investors are waiting to see if the stock begins a sustained rebound, or if further losses can be expected. The answer could come today, when the company presents the results of the second quarter of 2022.
According to analysts, revenue could be around 8,030 million dollars, a little more than in the first quarter and the same quarter last year. But beyond these main figures, investors will undoubtedly give more importance to another fact: the increase in the number of users.
Recall that when it released its first-quarter results in April, Netflix surprised investors by announcing a drop of 200,000 subscribers, the first subscriber loss in its stock history, sending its shares plummeting 35% the next day.
Therefore, a further decline in the number of subscribers in the second quarter could further weigh on the stock, regardless of earnings or billing.
Netflix remains the king of streaming, with 221.6 million subscribers worldwide. But the competition is quickly winning, offering premium content at a lower price. Disney+ has only been around since the end of 2019 and already has more than 135 million global subscribers. Hulu, which is also owned by Disney, has more than 41 million (and, as The Wall Street Journal reported Monday, Hulu has become Disney’s fastest-growing streaming service in the United States). Amazon Prime, HBO, Star + are also part of its direct competition.
Wall Street will no doubt take that huge market share into account, but analysts say Netflix needs to pad Tuesday’s bad news with some concrete ideas about how it’s going to keep the throne. Times are tough, but as Hare says, “No one has the stomach for a business that loses millions of subscribers every quarter.”
Source: Ambito
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