• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer
  • Articles
  • News
  • Events
  • Advertize
  • Jobs
  • Courses
  • Contact
  • (0)
  • LoginRegister
    • Facebook
    • LinkedIn
    • RSS
      Articles
      News
      Events
      Job Posts
    • Twitter
Datafloq

Datafloq

Data and Technology Insights

  • Categories
    • Big Data
    • Blockchain
    • Cloud
    • Internet Of Things
    • Metaverse
    • Robotics
    • Cybersecurity
    • Startups
    • Strategy
    • Technical
  • Big Data
  • Blockchain
  • Cloud
  • Metaverse
  • Internet Of Things
  • Robotics
  • Cybersecurity
  • Startups
  • Strategy
  • Technical

Netflix growth plan tops Wall St watchlist as lockdown love fades

Reuters / 3 min read.
July 20, 2021
floq.to/benyW

By Nivedita Balu and Eva Mathews

(Reuters) – Netflix Inc’s plans to revive its slowing subscriber growth will be in focus when it reports second-quarter results on Tuesday, as lockdown binge-watching subsides and competition from Disney+ and HBO Max ramps up.

Netflix has forecast it would add just 1 million subscribers globally in the second quarter, a tenth of what it added a year ago when COVID-19 restrictions forced people to seek entertainment at home.

The streaming pioneer has also been losing market share to new services such as Disney+, Apple’s Apple TV+, WarnerMedia’s HBO Max and Comcast’s Peacock. To be sure, the industry’s overall subscriber growth has also slowed as the U.S. market saturates.

Graphic: Netflix demand drops as competition peaks: https://graphics.reuters.com/NETFLIX-RESULTS/egpbknnqovq/chart_eikon.jpg

THE CONTEXT

Some Wall Street analysts have said a first-mover advantage will only take it so far and that Netflix needs to produce new content, renew content licenses and explore other revenue sources such as live sports and advertising to turbo-charge growth.

Co-CEO Reed Hastings has long been opposed to adopting an advertising model saying it would have to compete with market leaders Google, Facebook and Amazon.

The company is exploring an e-commerce push to sell content-related merchandise and recently hired Facebook executive Mike Verdu to anchor its gaming expansion.

But analysts are skeptical about the gaming move.

“While this strategy could be marginally accretive to Netflix’s member and revenue growth, we doubt the platform would be meaningfully competitive with endemic gaming platforms or content publishers anytime soon,” said Matthew Thornton, analyst at Truist Securities.

For now, Netflix is under intense pressure to produce new content, after big hits like “Emily in Paris”, “Bridgerton”, “The Queen’s Gambit” and “The Crown” in 2020. The pandemic delayed production, but the company has announced new seasons of “Stranger Things” and “Ozark” among others coming next year.

Graphic: Fewer new signups for Netflix as restrictions ease: https://graphics.reuters.com/NETFLIX-RESULTS/oakveddwopr/chart_eikon.jpg

FUNDAMENTALS

* Analysts estimate Netflix’s second-quarter revenue to grow 19% to $7.32 billion. Revenue in North America, its biggest region by revenue, is set to increase by 13.4%.

* Earnings per share is estimated at $3.16

* Its shares have lost 1.5% year-to-date, while the benchmark S&P 500 index has gained 13.4%.

* The stock, which soared 67% in 2020, is also the weakest performer among FAANG stocks this year.

Graphic: FAANG stocks versus S&P 500: https://graphics.reuters.com/NETFLIX-RESULTS/NETFLIX-RESULTS/azgvoqqgkvd/Pasted%20image%201626712264751.png

WALL STREET SENTIMENT

* Wall Street analysts are largely bullish, with 36 out of 46 rating the stock “buy” or higher, while six have a “hold” rating and four rate it as a “sell” or lower.

* The median price target is $620 versus the current price of $532.30

QUARTER REFINITIV ACTUAL RESULT SURPRISE %

ENDING IBES ESTIMATE

Mar. 2.97 3.75 Beat 26.4

31 2021

Dec. 1.39 1.19 Missed -14.2

31 2020

Sep. 2.14 1.74 Missed -18.8

30 2020

Jun. 1.81 1.59 Missed -12.2

30 2020

Mar. 1.65 1.57 Missed -4.9

31 2020

Dec. 0.53 1.30 Beat 146.8

31 2019

Sep. 1.04 1.47 Beat 41

30 2019

Jun. 0.56 0.60 Beat 6.6

30 2019

(Reporting by Nivedita Balu and Eva Mathews in Bengaluru; Editing by Sweta Singh, Anshuman Daga and Saumyadeb Chakrabarty)

Categories: News
Tags: Amazon, BI, rates, share, strategy

About Reuters

Primary Sidebar

E-mail Newsletter

Sign up to receive email updates daily and to hear what's going on with us!

Publish
AN Article
Submit
a press release
List
AN Event
Create
A Job Post

Jobs

  • Software Engineer | South Yorkshire, GB - February 07, 2023
  • Software Engineer with C# .net Investment House | London, GB - February 07, 2023
  • Senior Java Developer | London, GB - February 07, 2023
  • Software Engineer – Growing Digital Media Company | London, GB - February 07, 2023
  • LBG Returners – Senior Data Analyst | Chester Moor, GB - February 07, 2023
More Jobs
Host your website with Managed WordPress for $1.00/mo with GoDaddy!

Tags

AI Amazon analysis analytics app application Artificial Intelligence BI Big Data business China Cloud Companies company costs crypto customers Data design development digital environment experience future Google+ government information learning machine learning market mobile Musk news Other public research sales security share social social media software strategy technology twitter

News

  • China’s AI ‘war of a hundred models’ heads for a shakeout
  • South Korea asks US to resolve chip trade issues
  • US firm AXT says China unit has initial export permits for key chipmaking metals
  • Apple’s iPhone seen gaining market share in India as Pro model demand rises
  • Nvidia, other US chip stocks stall over valuation, industry worries
More News

Related Online Courses

  • Oracle Cloud Data Management Foundations Workshop
  • Data Science at Scale
  • Statistics with Python
More courses

Footer


Datafloq is the one-stop source for big data, blockchain and artificial intelligence. We offer information, insights and opportunities to drive innovation with emerging technologies.

  • Facebook
  • LinkedIn
  • RSS
  • Twitter

Recent

  • 5 Reasons Why Modern Data Integration Gives You a Competitive Advantage
  • 5 Most Common Database Structures for Small Businesses
  • 6 Ways to Reduce IT Costs Through Observability
  • How is Big Data Analytics Used in Business? These 5 Use Cases Share Valuable Insights
  • How Realistic Are Self-Driving Cars?

Search

Tags

AI Amazon analysis analytics app application Artificial Intelligence BI Big Data business China Cloud Companies company costs crypto customers Data design development digital environment experience future Google+ government information learning machine learning market mobile Musk news Other public research sales security share social social media software strategy technology twitter

Copyright © 2023 Datafloq
HTML Sitemap| Privacy| Terms| Cookies

  • Facebook
  • Twitter
  • LinkedIn
  • WhatsApp

In order to optimize the website and to continuously improve Datafloq, we use cookies. For more information click here.

Dear visitor,
Thank you for visiting Datafloq. If you find our content interesting, please subscribe to our weekly newsletter:

Did you know that you can publish job posts for free on Datafloq? You can start immediately and find the best candidates for free! Click here to get started.

Not Now Subscribe

Thanks for visiting Datafloq
If you enjoyed our content on emerging technologies, why not subscribe to our weekly newsletter to receive the latest news straight into your mailbox?

Subscribe

No thanks

Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

Necessary Cookies

Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.

If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.

Marketing cookies

This website uses Google Analytics to collect anonymous information such as the number of visitors to the site, and the most popular pages.

Keeping this cookie enabled helps us to improve our website.

Please enable Strictly Necessary Cookies first so that we can save your preferences!