[Stock Prediction] How will NFLX close after its earnings report?
Netflix is set to report second-quarter earnings after the bell on Thursday, July 16. The stock has fallen nearly 25% over the past three months and has dropped after each of its last four earnings reports. $Netflix(NFLX)$
Analysts expect Netflix to report second-quarter revenue of about $12.58 billion and earnings of $0.79 per share. Netflix previously guided for second-quarter revenue of about $12.57 billion, up 13.5% year over year.
What to Watch
Advertising will be a major focus. Netflix’s ad-supported service has surpassed 250 million monthly active viewers, and the company expects ad revenue to double to about $3 billion in 2026. Investors will be looking for updates on ad revenue, engagement, monetization and the number of users choosing the ad-supported plan.
Content and viewing time will also be closely watched. Netflix has yet to produce a major global breakout hit this year, while some recent shows have experienced weaker viewership in their second seasons. With YouTube, Disney, Amazon and other platforms competing for attention, Netflix may need to spend more aggressively on content to keep viewers engaged.
That could put pressure on profitability. The company’s second-quarter operating margin is expected to fall from more than 34% a year ago to around 32%, partly because of higher content amortization expenses.
Despite these concerns, options traders appear increasingly bullish ahead of the report. Recent Netflix call volume was nearly three times put volume, while options pricing implies a post-earnings move of approximately 7.6% in either direction.
How to Participate
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Click to vote. Guess where $Netflix(NFLX)$ will move following its earnings. If you get the correct answer, you may divide 1,000 Tiger Coins with other Tigers.
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Reply and forward this post, Are you bullish or bearish on $Netflix(NFLX)$ after earnings? Tell us why!
【Prizes】
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Event Period
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Ends: 4:00 AM SGT, July 17
How will NFLX close after its earnings report?(Single choice)Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
PCT = Pandas Coffee Talk.
Recent Price Level: NFLX has recently traded in the $73.00 to $75.00 range.
52-Week Range: The stock has fluctuated between a low of $70.91 and a high of $127.42 over the past year.
Analyst Forecasts: According to Wall Street analysts, the average 12-month price target is $113.68, with predictions ranging from a low of $95.00 to a high of $151.40.
I guess 80USD.
I'm particularly watching the advertising business. If management shows strong growth in ad revenue, better monetization, and continued adoption of the ad-supported plan, I believe investors will focus more on the long-term earnings potential than on a slight decline in operating margin.
I'm staying bullish because Netflix continues to have a strong global subscriber base and multiple growth drivers. As long as management delivers a confident outlook and demonstrates that advertising is becoming a meaningful profit engine, I think the stock has a good chance of rallying 5%–10% after the earnings release.
@Tiger_comments @TigerStars @TigerClub @Tiger_Earnings
A positive update regarding Netflix's new USD 3 billion advertising tier will be great news for investors. It will also squeeze short sellers who are heavily betting on a 5th straight earnings collapse.
Is Netflix a good buy currently?
Yes I believe it is oversold and undervalued. Netflix's dominant global market share with over 325 million paid subscribers, remains the undisputed king of digital entertainment streaming business.
@Tiger_comments @Tiger_SG @TigerStars