Will Netflix Make Too Much Money Again in Tuesday's Earnings Report?
When Netflix (NASDAQ: NFLX) reports second-quarter results on Tuesday evening, all eyes will turn to the usual business metrics. The stock will probably jump on Wednesday morning if the company beats the growth target of 1 million net new subscribers. Falling short of that target will bring down the stock price instead, which is what happened with April's first-quarter report.
I'll grab my popcorn and watch that figure like everyone else, of course. Subscriber growth is an important measure of Netflix's business performance, after all. But I will also keep a close eye on the company's profit margins, because Netflix needs to break a bad streak of gratuitous operating income.
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Source Fool.com
