2/16/2023 0 Comments Camel tor picturesI doubt this because analysts are doing data checks which lower the uncertainty of what might be reported. Perhaps the only hope for bulls is that expectations are now so low that Netflix will be able to exceed them. In short, unless Netflix exceeds expectations for first quarter net subscription additions and raises its guidance for the current quarter, Netflix shares could plunge tomorrow. With inflation at 8.5% in March, it would not surprise me if cancellation traffic rises as people look to save money on non-essentials - perhaps cancelling Netflix after they’ve watched a p0pular series - such as Bridgerton - and signing up again in the future when, say, the final season of The Crown becomes available. and Canada, cancellation traffic increased 0.5% in the first quarter. Schindler noted that the downloads were flat compared to the first quarter of 2021 and down 6% from the fourth quarter of 2021, according to SeekingAlpha.Īnd after Netflix raised subscription prices in the U.S. Moreover, so-called data checks suggest a slowdown in Netflix app downloads and a rise in cancellations as price increases go into effect. ![]() Bank of America’s BAC Nat Schindler thinks that the Street’s Q2 consensus of 2.6 million net additions is too high given that the second quarter has been seasonally weak. As Barron’s reported, that forecast was far short of the Street consensus forecast of 5.7 million - which it now sees at 2.8 million.Įven if Netflix exceeds Wall Street’s Q1 forecast, investors will surely punish the stock if it issues a disappointing forecast for the June-ending quarter. ![]() ![]() Investors will be watching closely net subscriber additions for the first quarter - which Netflix has projected at 2.5 million globally. Netflix’s Subscription Additions Forecast Specifically, Netflix said its revenues would increase a relatively low 10.3% to $7.9 billion in the March 2022-ending quarter, noted TipRanks. ![]() Netflix has guided investors to expect further deceleration for the first quarter of 2022. According to TipRanks, in the fourth quarter of 2020, Netflix’s revenue grew 21.5% - far more rapidly than the 16% growth it reported in the fourth quarter of 2021. With rivals growing rapidly and Netflix’s market share falling, it comes as no surprise that Netflix’s revenue growth has also been slowing down.
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