This Key Metric Could Make or Break Netflix Stock

Once a darling on Wall Street, with a stock price that soared 6,230% during the 10-year period that ended November 2021, Netflix (NASDAQ: NFLX) has since come crashing back to Earth. The business has long prioritized membership growth ahead of producing cash, but with a loss of 200,000 subscribers in the first quarter of this year, investors are questioning the company's prospects. Shares are down 71% so far in 2022.

The leading streaming service reports second-quarter financial results on Tuesday, July 19, and there's one critical metric that I'll have my eyes on: the addition (or loss) of subscribers.

Not only did Netflix shed members in Q1, but in the just-ended quarter, management expects to lose another 2 million. Intense competition from the likes of direct rivals like Walt Disney's Disney+ and Hulu, Amazon Prime Video, and Warner Bros Discovery's HBO Max was cited by the leadership team as a major factor negatively impacting performance.

Source Fool.com