Netflix Earnings: What to Watch

Netflix (NASDAQ: NFLX) epitomizes the types of stay-at-home businesses that have benefited from people sheltering during the coronavirus pandemic. Consumers have turned to services like Netflix as they spend more time in front of the TV. Subscriptions to the company's platform surged in both Q1 and Q2. With so much momentum in Netflix's business, it's not surprising that the growth stock has soared recently. Shares are up 67% year to date.

Despite the stock's huge gains, expectations for the streaming-TV company's third quarter aren't very high. With so many people starting Netflix subscriptions during the first half of the year, management indicated in the company's second-quarter shareholder letter that it believed growth could slow significantly in Q3 due to a pull-forward of demand into the first half of the year.

Here's a closer look at what to expect from subscriber growth in Q3, as well as a preview of three key areas investors will want to check on when Netflix reports earnings today.

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Source Fool.com