Wall Street Has High Hopes For Netflix's Latest Earnings Report

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Netflix’s stock has risen more than 30 percent year-to-date, driven as of late by Wall Street expectations that the global streaming giant would turn out to be one of the rare beneficiaries of the coronavirus pandemic and governments’ stay-at-home orders

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"With the ongoing COVID-19 pandemic increasing the quantity of leisure time spent indoors, we expect to see Netflix’s next quarterly reporting to indicate that the strong value for money its library and fresh content represents has attracted a glut of new subscriptions," Futuresource analyst Tristan Veale tellsCowen analyst John Blackledge, in an April 15 report, increased his subscriber expectations, but remains on the lower end of the Street range.

Morgan Stanley analyst Benjamin Swinburne boosted his first-quarter forecast by 1.5 million to 8.5 million subscriber additions, including 1.1 million in the U.S. and Canada. For the second quarter, Pachter predicts 4.25 million subscriber additions, Jayant projects 5 million, and Wlodarczak forecasts 5.7 million, including 400,000 in North America.

“Despite a broader market pullback, Netflix shares have rallied sharply over the last several weeks on the idea that the pandemic has made the platform invaluable to consumers around the globe while people remain at home with a more limited set of entertainment options,” Jayant, who has an "in line" rating on the stock, wrote in his Thursday note. "Netflix is the fourth best-performing stock year-to-date in the S&P500 index.

 

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Netflix has a tough job on its hands nevertheless... Their series and particularly their films are rapidly becoming outdated. Netflix

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