Netflix subscriber trend will be watched
Netflix has some convincing to do as heavy competition waits in the wings
Share this:
Netflix has some convincing to do as heavy competition waits in the wings
Rivals are set to swarm over Netflix’s patch, though with Disney+, the new streaming entrant, launching on 12th November, the quarter was spared direct pressure from major competition.
Meanwhile, a more impressive line-up than in Q2 should help streaming subscriber growth rebound, overall. International subscriber growth is forecast to accelerate by 24% year-on-year, or 6.92 million, but U.S. subscriber growth is seen declining by 21%, an 859,000 fall.
Adjusted EPS forecast: +20.3% to $1.24. Revenue forecast: +31% to $5.25bn.
WHAT TO WATCH
Netflix will not only have to exceed its guidance around 7 million subscriber additions but also deliver a healthy 4Q forecast to ease concerns that arose after weak 2Q results. Questions about the business model abound, given looming competition. A strong slate including "Stranger Things" should have helped subscriptions in 3Q, but investors will be most curious about how the company plans to fend off a new crop of rivals prepared to pour vast sums of money into content. Subscriber guidance for 4Q is critical, given the November launches of Apple TV+ and Disney+.
Netflix has some convincing to do as heavy competition waits in the wings
Rivals are set to swarm over Netflix’s patch, though with Disney+, the new streaming entrant, launching on 12th November, the quarter was spared direct pressure from major competition. Netflix reports third quarter results tonight at 21.00 BST.
Meanwhile, a more impressive line-up than in Q2 should help streaming subscriber growth rebound, overall. International subscriber growth is forecast to accelerate by 24% year-on-year, or 6.92 million, but U.S. subscriber growth is seen declining by 21%, as the group is expected to report just 859,000 additional U.S. viewers.
Adjusted EPS forecast: +20.3% to $1.24. Revenue forecast: +31% to $5.25bn.
WHAT TO WATCH
Netflix will not only have to exceed its guidance around 7 million subscriber additions but also deliver a healthy 4Q forecast to ease concerns that arose after weak 2Q results. Questions about the business model abound, given looming competition. A strong slate including "Stranger Things" should have helped subscriptions in 3Q, but investors will be most curious about how the company plans to fend off a new crop of rivals prepared to pour vast sums of money into content. Subscriber guidance for 4Q is critical, given the November launches of Apple TV+ and Disney+.
Related tags:
Latest market news
Open an account in minutes
Experience award-winning platforms with fast and secure execution, and enjoy tight spreads from 0.5 pts on FX and 0.3 pts on indices.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
Nikkei threatens breakout as tech rebound broadens
Breakouts across the SOX and Nasdaq are being matched by rebounds across Asia, with the Nikkei now threatening to join the move.
S&P 500, Nasdaq 100 Forecast for the Week Ahead
A hawkish Fed and 10-Year Notes on the verge of a push above 5%, yet stocks have so far shrugged off that fear. But can it continue?
Hang Seng Tech rout nears make-or-break zone
The technical damage is clear, but with Hang Seng Tech now deeply stretched and approaching major support, the risk-reward is becoming more two-sided.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.forex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.