Netflix offers a subscription-based streaming service that allows members to watch TV shows and movies without commercials on an internet-connected device and it is one of the world's leading entertainment services with over 209 million paid memberships in over 190 countries.
It led the streaming revolution and popularized binge-watching, although it started out as DVD rental and sales company in 1997.
The company will report its financial results for the third quarter of the year on Tuesday October 19th, after the market closes, being traditionally the first of the FAANGs (Facebook, Amazon, Apple, Netflix, Google) to report.
WHAT TO LOOK FOR
During the second quarter, Netflix had added 1.54 million paid subscribers, which was better than expected but marked the second straight quarter of slower subscriber growth. Now investors will be looking forward to the updated figures for Q3, with the company projecting 3.5 million new memberships.
In its Q2 report, it had also announced a gradual entry into games, which will be included in members' subscription at no additional cost similar to films and series and in late-September the company said that video game developer Night School Studio, was joining Netflix, so we will be on the lookout for any more details and progress report on this front.
Revenue is forecasted at $7.48 billion compared to $7.34 billion in Q2 and $6.43 billion a year ago.
Earnings are projected at $2.55/share, lower than the $2.97 reported in the second quarter of the year, but higher compared to the $1.74 of Q3 2020
Revenue and EPS forecast were extracted from investing.com earnings calendar
The Californian based company was the clear winner of the 2021 Emmys that were hosted in September, as it scored a total of 44 awards (Creative Arts & Telecast) and surpassed HBO/HBO Max for the first time – having tied in 2018.
Netflix's "The Crown" that chronicles the life of Queen Elizabeth II won the "Outstanding Drama Series" category and "The Queens Gambit" which follows the life of a chess prodigy won the "Outstanding Limited or Anthology Series" category. The two original TV series scored the highest number of awards, with 11 victories each.
On September 25th, the streaming giant hosted its first-ever global fan event, TUDUM, during which it shared news, first looks and trailers from over 100 upcoming Netflix films and series.
The 3-hour show (along with pre-shows in certain countries) generated 25.7 million views across Netflix's YouTube channels and its other online venues, as of September 28th, highlighting the huge interest in its programming and content consumption in general.
NFLX.us has had a very good third quarter with gains in excess of 15% and made a solid start to the latest quarter, setting new all-time highs ($631.44) last week.
Past Performance: Past Performance is not an indicator of future results.
Senior Market Specialist
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business.
He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.
With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets.
He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.