Traders wait to see if Netflix can keep its streak of subscriber surprises going

by | Apr 18, 2023 | Financial

Netflix reports earnings after the bell Tuesday and traders know that pretty much all that matters to the stock is how many subscribers did the streamer add for the prior period. The stock has been on a roll the last three quarters as Netflix posted an increase in net global subscriptions that, each time, significantly beat Wall Street’s expectations. Netflix’s recent streak of subscriber surprises come after the streaming giant struggled to add subscribers in the fourth quarter of 2021 and glaringly missed consensus expectations in the following quarterly period. Those uncharacteristic misses dramatically cut the value of the stock. But Netflix has doubled off its 52-week low as it got its subscriber mojo back. Here’s a look at recent quarters’ subscriber additions vs. Wall Street estimates and the subsequent stock reaction, according to Goldman Sachs data. The question for investors now is: Will Netflix be able to keep this momentum? Although the stock is seeing better days, Goldman isn’t too sure. Analysts at the firm expect Netflix to report in-line to a possible slight upside in subscriber performance for the first quarter, saying they had expected the company to implement a more accelerated global crackdown on widespread password-sharing . The company’s crackdown extended to just four additional markets during this period, Goldman noted. “We believe NFLX mgmt w …

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