Netflix To Step Into Spotlight, Kicking Off A Media Earnings Season Riddled With Anxiety

The report will have “wide-ranging implications for the stock and the media ecosystem,” in the view of Guggenheim analyst Michael Morris.

Last quarter, Netflix issued a warning about its second-quarter performance, saying it could shed as many as 2 million subscribers, though it continues to pace thebusiness with about 222 million worldwide. Investors last April reacted harshly to the company’s first subscriber losses in more than a decade, punishing the company’s shares, which had already fallen from their 2021 all-time high. Over the past six months, about two-thirds of the company’s market value has been destroyed.

A few items in particular will be center stage when Netflix steps into the spotlight: the subscriber narrative as well as updates on the rollout of a cheaper, ad-supported tier and efforts to curb free password sharing. The latter two initiatives were trumpeted by the company last quarter, though the about-face on advertising after years of insisting it would never take ads left a lot of observers flummoxed, especially given the hasty and scattered way it was communicated.

Posing a question in the title of his note to clients — “The First Streaming Recession?” — Swinburne paints a fairly grim picture for the media sector. “The pivot to streaming has not reduced the risk to media estimates from a slowing economy,” he wrote. “Advertisers and consumers likely pull back in a recession.”

MichelArouca

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Recession fears loom over U.S. value stocks By Reuters*RECESSION FEARS LOOM AS Q2 EARNINGS SEASON KICKS INTO HIGH GEAR THIS WEEK - Thiis is a gamee changeer. ? Someone explain to me please Preparing for Monday fud. Classic
Source: Investingcom - 🏆 450. / 53 Read more »

Will companies continue to raise prices to maintain their record profit margins?As earnings reporting season kicks into high gear, there is one major question that could determine where stock prices and inflation will head from here:... Yes, until inflation comes down. Yes. You are asking a question? Jeez you should go back to school to learn about (capitalist) economics. Or read Milton Friedman. People are just meat to be ground up in the giant machine that is driven by profit. Once you understand that your question isn't a question but a hard fact
Source: MarketWatch - 🏆 3. / 97 Read more »

3 key numbers in company earnings reports to watch out for this earnings seasonStarting this week and running through July, the country’s publicly traded companies are scheduled to reveal their second quarter earnings and share their best guesses on what’s in store for future bottom lines. For those who think that the current inflation was caused by: -Govt Spending $$ on avg folks -funded by The Fed's 'money printing' Here's an article that explains in detail why you've been misled by Wall St apologists...
Source: MarketWatch - 🏆 3. / 97 Read more »