Is Netflix

a Purchase Beyond Earnings?

Netflix -Is Netflix a Purchase Beyond Earnings?

Netflix (NFLX) will announce the first quarter results after the bell on Tuesday. One of Wall Street's biggest hitters will rise to the gain plate this week; Netflix (NFLX) will announce the first quarter results after the bell on Tuesday. Andrew Marok, analyst at Raymond James, evaluates the quarter of the streaming king and points out a few items to consider in Netflix's quarterly release. While Marok continues to view Netflix as the "long-term winner in the video-on-demand space", he emphasizes that there are some short-term factors that could hinder trials. These factors are given as follows: on considation the scaling of competing services that reach the consumer directly: 1-Risk related to the rate of adding subscribers after the pandemic. 2- The effects of the pandemic on content up to 2021. 3- The effect of price announcements on subscriber retention. The excessive demand for the Netflix service during the pandemic helped the company reach a record number of new subscribers in the same period last year.

Netflix (NFLX) will announce the first quarter results after the bell on Tuesday.

According to Marok “ First point,  although he predicts that the net subscriber gain in the quarter will be slightly below expectations, on this front, the next quarter is predicted to be more problematic. Stating that they saw an increasing risk in their net addition estimates, Marok said, “Maybe it is less for the 1st quarter because the reopening momentum is gaining weight towards the back of the quarter. However, it is increasing gradually for the second quarter. " As for Marok's second point, Netflix had to stop production as the rules of staying home came into play due to the epidemic exacerbation. In the 3rd factor; Netflix has recently increased prices in certain regions, including the US, UK and Ireland. This is another major concern besides the departure of Netflix's top series, Office. Seeing these factors as potential sources for increased losses in the first quarter, Marok comments, “It adds another degree of risk to the company not found in a typical price hike cycle”. To that end, the analyst rates the NFLX stock as a Market Performance (Hold) and says that he has no fixed price target in mind for the shares. The forecast on Wall Street shows 12-month gains of 11,5 %, given that the average price target is $ 618,41. Netflix (NFLX) will announce the first quarter results after the bell on Tuesday.    

Source: Yahoo.Finace

 

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