From Nasdaq: 2024-04-11 23:57:04

Netflix is expected to report Q1 2024 results with estimated revenue of $9.3 billion, slightly above consensus estimates. The company’s earnings are forecasted at $4.50 per share, in line with expectations. Factors like subscriber growth and ad-supported streaming are likely to influence earnings. Netflix stock has seen fluctuations but remains overvalued at $636 per share.

Netflix’s revenue growth is driven by trends like cracking down on password sharing and offering ad-supported plans. The company added 13 million new subscribers in Q4 2023, reaching a total of 260.8 million paid users. The ad-supported tier, with 23 million users globally, offers high value and higher revenue per user than the standard plan.

Despite some gains, NFLX stock has shown inconsistent performance compared to the S&P 500, underperforming in 2021 and 2022. The stock could face challenges in the current macroeconomic environment and may see reduced subscriber growth in the future. Trefis analysis suggests an overvaluation of Netflix stock at $636 per share.

Investors should closely monitor Netflix’s earnings report and future performance to assess its stock’s potential movement. The company’s success in subscriber growth, revenue from ad-supported tiers, and ability to navigate challenges in the macroeconomic landscape will be key factors influencing its stock performance. Trefis analysis suggests caution with a $502 price estimate for Netflix, considering current market conditions.



Read more at Nasdaq: Up 27% Year To Date, Will Q1 Results Drive Netflix Stock Higher?