Netflix (NFLX) — will ship its second-quarter monetary results after the market shut on Wednesday.
After dominating the streaming space for years, the corporate now faces rising competitors. As new gamers enter the game, buyers have been hyper-targeted on how Netflix will finally fare within the evolving media landscape. Whereas competitors could also be a fear amongst buyers, some analysts on Wall Street assume such issues are overblown. “We predict these fears are overdone, and we like the setup for NFLX shares going into 2H19, pushed partially by an ideal content material slate,” Cowen analyst John Blackledge wrote in a note on July 9.
However, in April, Netflix warned buyers of weaker new subscriber growth. The corporate projected 5 million new subscribers from April to June and 4.7 million of these subscribers are expected to have come from international markets. Subscriber growth remains a concern as development charges are expected to say no in a competitive environment.
Original content material and a shrinking library will even be focal factors for Netflix going ahead. As the corporate continues to write down hefty checks for a brand new slate of movies and shows, Netflix has been dropping popular shows such as “Friends” and “The Office,” that is anticipated to leave Netflix in 2020 and 2021, respectively. Maintaining a robust library shall be a problem that buyers will pay attention to in the second half of the year and beyond.
Analysts polled by Bloomberg expect Netflix to report adjusted earnings of 77 cents per share on $4.93 billion of income. Usually following second-quarter earnings, Netflix stock has seen a 5.9% drop the next day, in keeping with Bespoke Investment Group.