Netflix Stock Has a Lot to Prove This Week
Earnings season hasn't been kind to Netflix (NASDAQ: NFLX) lately. It's a gloomy backdrop as the streaming service prepares to report fresh financials shortly after Tuesday's close this week. Everyone will be watching Netflix, especially now that it has proven mortal after recent layoffs and missing its own subscriber guidance in three of the past five reports.
After Netflix shocked investors three months ago with a 200,000 sequential decline in streaming subscribers for the first quarter -- a stunning reversal from the 2.5 million net additions it was targeting for the period -- pessimism is already baked into the shares. Back in April, Netflix warned investors that it expects the net defections to clock in at 2 million this time around. It's like lowering a limbo stick at an ant party. Netflix stock is down 69% this year even after a rare 8% rally on Friday. If Netflix is showing signs of finally bottoming out it's going to have avoid finding a new way to break shareholder hearts on Tuesday afternoon.
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Source Fool.com
