Netflix’s stock was in the red for 2021 as recently as August. Investors feared he had lost his excitement as consumers flocked to new streaming platforms like Disney +, Amazon Prime Video, Apple TV +, Paramount +, Peacock and HBO Max, which is owned by CNN’s parent company, WarnerMedia. .
Most Netflix (, which will release its third-quarter results on Tuesday, has seen a massive turnaround in recent months as users have become addicted to South Korea’s “Squid Game”. )
The drama about game show entrants trying to survive dangerous contests has created much-needed buzz – and viewers – for Netflix since its world premiere in September. Netflix exclusively told CNN Business this month that 117 million accounts have watched the show since its inception.
Netflix stock is now up 17% this year, better than Apple ( and )Amazone ( and roughly in line with )Facebook ( increase since the beginning of the year. Shares in Google Owner )Alphabet ( climbed 60% in 2021, making him the top performer in the FAANG elite tech equity group. )
The question for Wall Street is whether “Squid Game” will lead to even greater financial success for Netflix.
Analysts predict third-quarter revenue rose 17% from a year ago to $ 7.5 billion and net profit climbed 47% to $ 1.2 billion, or 2 , $ 56 per share, according to forecasts tracked by data provider Refinitiv.
But the number that investors will be watching more closely is the number of Netflix subscribers. The main reason Netflix shares stagnated earlier this year was due to concerns about slowing user growth.
Wall Street estimates that Netflix added around 4 million subscribers in the third quarter, for a total of 213.3 million worldwide.
Advice from the company will also be essential. Analysts predict an even larger increase in the number of users in the fourth quarter – an increase of more than 8 million to 221.4 million.
Netflix shares typically thrive or dip after earnings due to the company’s subscriber outlook. And there may be additional pressure on the company to provide bullish forecasts.
That’s because many analysts are extremely bullish on Netflix stocks. Of the 45 that cover the company, 33 have buy quotes on the shares. If Netflix’s prospects disappoint, the action could suffer a fate almost as harsh as the hapless losers of “Squid Game.”
Tougher competition for Tesla?
Electric car giant Elon Musk is expected to post strong third quarter results after the closing bell on Wednesday. Analysts forecast a nearly 55% increase in sales for Tesla (, to $ 13.5 billion. Wall Street is also forecasting a profit of $ 1.6 billion, almost double a year ago. )
Investors have rewarded Tesla’s success. The stock rose more than 15% in 2021 and the company is now worth $ 820 billion, making it the sixth most valued company on the S&P 500.
But as impressive as it sounds, Wall Street is also starting to think that mainstream automakers will soon eat away at Tesla’s electric vehicle dominance.
Detroit rivals GM and Ford have both recently pledged to invest even more in the electric vehicle market. Actions of DG ( have climbed nearly 40% this year while )Ford ( the share climbed more than 75%. )
On Monday: American industrial production; Gains of Albertsons, Philips and State Street; Apple product event
Mardi: housing starts in the United States; Earnings from Johnson & Johnson, Procter & Gamble, Travelers, United Airlines and Netflix
Wednesday: Eurozone consumer price index; China’s interest rate decision; the US Fed’s Beige Book; Profits from Verizon, IBM and Tesla
Thusday: Unemployment claims in the United States: sales of existing homes in the United States; Profits from AT&T, American Airlines, Southwest, Intel, Chipotle, Mattel and Snap
Friday: UK retail sales; American Express and Honeywell Benefits