Trending now: Netflix's forecast as competition heats up – Reuters

The Netflix logo is seen on a TV remote controller in this illustration photo taken January 20, 2022. REUTERS/Dado Ruvic/Illustration
April 18 (Reuters) – Netflix Inc (NFLX.O) is expected to report its slowest quarterly revenue growth in nearly eight years on Tuesday, but the focus will be on its forecast in the run-up to new seasons of popular titles including "Stranger Things" and "Ozark".
The company is spending billions to bring more original films and TV shows, as well as build mobile games in an effort to add subscribers in a post-pandemic world where it is grappling with competition from HBO Max (WBD.O), Amazon.com Inc (AMZN.O) and Walt Disney (DIS.N).
Netflix could lose about a million subscribers due to its Russia exit, analysts have indicated. read more
Analysts expect Netflix to add 2.6 million subscribers in the first quarter and 2.7 million in the seasonally weak second quarter, according to Refinitiv data, still below the average number of subscribers it added during the peak of the pandemic.
Analysts say the company's subscriber growth will come from developing regions where it has cut prices, while increased prices in the United States and Canada would fund new content.
"Longer-term, most investors struggle to see the catalyst for a major re-acceleration in net additions in FY23 or beyond," Dan Morgan, Senior Portfolio Manager at Synovus Trust, said.
THE CONTEXT
Netflix has bought three gaming studios to diversify sources of revenue, but analysts do not expect a big bump from that soon.
"We are not very convinced that users will really view video games as anything other than a minor feature," Morningstar analyst Neil Macker said, adding the effort is just a "distraction" from its core business.
Netflix's most formidable challenger is Disney+, which launched in late 2019 and expects to have about 230 million to 260 million subscribers over the next two years. Platforms like HBO Max, Apple TV+ and Amazon Prime have also seen a significant growth in subscribers.
And while Netflix has had several Academy Award nominations in the past, Apple became the first streaming company to win a Best Picture Oscar for "CODA".
FUNDAMENTALS
* Analysts estimate Netflix's first-quarter revenue to grow 10.7% to $7.93 billion when it reports results on April 19
* Earnings per share is estimated at $2.90
* The stock has lost 43.4% of its value this year, making it the worst performing FAANG stock
WALL STREET SENTIMENT
* 25 out of 46 analysts rate the stock "buy" or higher, while 18 have a "hold" rating and three rate it as a "sell" or lower
* The median price target is $500; prior to Q4 earnings PT on stock was $700.
** NFLX trading at $334.17 currently
Our Standards: The Thomson Reuters Trust Principles.
Sign up to our tech newsletter to get the latest news and trends in the global technology industry.
Subscribe to our newsletter to get all the news you need to start your day.
Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers.
Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology.
The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs.
The industry leader for online information for tax, accounting and finance professionals.
Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile.
Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts.
Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks.
All quotes delayed a minimum of 15 minutes. See here for a complete list of exchanges and delays.
© 2022 Reuters. All rights reserved

source

Share:

More Posts

Market Research

Pulse Surveys

Turn feedback into action

Our survey platform makes it easy to measure and understand feedback so you can drive growth and innovation

Pulse Handshak

Pulse Handshak

Collaborative online survey tool for the market research industry. Remote assisted surveying just like face-to-face interviews. Here interviewers can talk to the respondent over the web-console without the need for any other communication channel and share the same Q're with responses and click actions.

Pulse FE

Pulse FE

Pulse Field Expert or Pulse FE is the main platform for both offline and online survey at softofficepro.com. It is robust and used by hundreds of clients over tens of years with millions of responses. Do it once Q're and deploy on both offline devices (android) and online forms makes it a great cost effective platform for any kind of responses

Pulse Ultimate

Pulse Ultimate

Pulse Ultimate is targeted for tracking studies and retail audits. An offline survey system offering extreme field control including processes like data quality check, back-check, rework, comparison with previous wave data etc. helps to get the best results on a day-to-day basis

Pulse LS

Pulse LS

Use a managed Limesurvey and our expertise for creating complex forms and token based user management. Use optional mailing system to send survey invitation to each participant and track progress of the response status. Industry standard SPSS / R output supported