Netflix looks to keep up its hot streak in the second quarter
When Netflix reported its second quarter in the afternoon of Thursday, Ginny & Georgia Streamer will try to continue a warm line that started at the end of 2023. Wall Street analysts expect profit per share of $ 7.08 from $ 4.88 last year and await $ 11.1 billion revenue with an increase of 16%.
After sales growth slowed down in 2022, Netflix pulled two branches to reverse things. He broke the password sharing and started to offer a cheaper ad supportive layer.
The initiatives were successful, and now Netflix has scored six quarters on a row with a double -digit income increase. The S&P 500 index increased by 28% since Netflix reported the first of these quarters in January 2024.
This run extended the valuation of the stock and earned 44 times more for the next 12 months and close to the highest level of three years. Other valuation metrics are similarly inflated. Netflix cannot show any weakness for the second quarter or the third quarter to ensure that the rally continued, analysts earning per share with an income of $ 6.69 $ 11.3 billion.
In order for Netflix to continue, the ad layer will have to continue to grow rapidly. According to the visible Alpha Research President Melissa Otto in S&P Global, he saw $ 1.9 billion in his sales of 2024 and is expected to buy $ 3.9 billion this year, making it an important driver for the whole company.
Ads can be more profitable than subscriptions. The company’s operating profit margin is growing, the last 32% in the first quarter, and the pennant was foreseen for this quarter 33%.
“Netflix has established a great entertainment platform and in the early stages of developing a promising digital advertising series,“ We expect Netflix to gain constant momentum on the digital advertising front, benefit from higher monthly subscription prices and publish a regular new content of content. ”
Netflix has survived a new competition attack from Disney, Amazon, Apple and more for the last few years. According to Nielsen’s imaging data in June, Netflix easily undertakes all of Alphabet, which rose from 9.9% to 12.8% in June a year ago, except for Youtube. The next nearest combination of 4.8% of Disney’s three streaming services.
Netflix is increasingly more square, the rest compete with each other. The wild card on the road is Tiktok, which can become a larger part of the picture on the road.
Netflix receives most of its income from abroad, so the weak dollar in the second quarter It could be a tail wind.
