Netflix Earnings Preview: Wall Street Doesn't Expect a Major Subscriber Upside Surprise

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The global streamer reports its latest subscriber and financial results on Tuesday.

Analysts also forecast password sharing and pricing will be topics when the global streamer reports its latest subscriber and financial results on Tuesday.

Various analysts have in recent days published their own forecasts and predictions, which are roughly in line with company expectations or slightly higher. Beyond subscriber trends, expect investors and analysts to keep a close eye on monthly pricing and password sharing commentary from Netflix management.

J.P. Morgan's Doug Anmuth, who has an"overweight" rating and $685 price target on the stock, in a Tuesday report forecast 6.3 million first-quarter user additions, but said that overall investor expectations"are no higher than guidance based on recent investor conversations.

Swinburne sees Netflix hitting management's 6 million subscriber gain target in the latest quarter before a drop to 3.5 million in the second, followed by re-acceleration to 5.8 million in the third and 9.7 million in the fourth quarter."We expect net additions to begin increasing year-over-year in the second half of 2021 and in 2022," he wrote.

"Netflix has executed extremely well during the pandemic, surprising us by keeping its foot on the gas pedal for subscriber growth, while benefiting from a disruption in content production schedules that allowed it to generate positive free cash flow," he wrote in a Thursday report."While we are far more constructive about Netflix than we have been at any point in nearly a decade, we continue to question its valuation.

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