From Nasdaq:

Netflix is set to report Q4 2023 results on January 23, with estimated revenue of $8.75 billion – slightly ahead of estimates. Netflix’s ad-supported plan is growing rapidly, adding nearly 70% more membership in Q3. Despite a decline in stock over the last year, it had overall strong returns on investment in 2023.

The streaming giant began cracking down on password sharing, adding 5.9 million signing up for their services in Q2 and 8.76 million in Q3. They also hiked basic and premium plan prices in October, seeing sign-ups exceed cancellations. The ad-supported plan is also continuing to grow and has a higher average revenue per membership.

A decline of 10% has been seen in Netflix stock, also underperforming in 2021 and 2022. In comparison to benchmark stocks such as TSLA, MSFT, and AMZN, it has consistently underperformed, although in 2023, it returned 65%.

Despite potentially beating earnings, Netflix stock is slightly overvalued at $474. Mounting competition due to streaming wars may impact overall growth in the long run. Trefis has a price estimate for Netflix at $410, 14% below the current market price. The uncertainty of the macroeconomic environment could also weigh on the company.



Read more: Up 50% Over Last Year, Will Q4 Earnings Drive Netflix Stock Higher?