Will the Netflix T2 results crash the stock again tonight?21 / 07 / 22 Visitors: 246
However, since the end of April, there has been a trend towards consolidation, and investors are waiting to see whether it is worth betting on the beginning of a steady rebound in stocks or, conversely, whether it is worth fearing new losses.
However, the answer may be made public tonight when the company releases its results for the second quarter of 2022.
Based on the data collected Investing.com EPS consensus was $2.96, down from $3.53 in the first quarter and stable compared to Q2 2021. On the other hand, revenue is expected to be US$ 8.03 billion, which is slightly more than in the first quarter, as well as compared to the same quarter of the previous year.
But apart from these basic figures, investors will undoubtedly attach even more importance to other data: the growth in the number of subscribers.
Recall that when Netflix published its results for the 1st quarter in April, it shocked investors by announcing a reduction of 200,000 subscribers, which was the first subscriber loss in the history of its shares, which led to a 35% drop in shares the next day.
Thus, a further reduction in the number of subscribers in the 2nd quarter may further affect the shares, regardless of profit or revenue.
What do Netflix analysts and valuation models say before Q2 results ?
Finally, to get a good look at the release of Netflix's Q2 results tonight, it seems interesting to sum up analysts' expectations and Netflix stock valuations.
Firstly, it should be noted that analysts' opinions are quite ambiguous, since out of 45 professional analysts tracking stocks, most of 24 hold a neutral opinion, 6 recommend Selling, and only 15 advise buying.
On the contrary, the average target of these analysts, which is at $272.20, suggests a potential drop of more than 42% compared to the current price.
Finally, the fair investment value of Netflix shares, which combines several recognized financial models, is $270.17, which means a bullish potential of +41.5%.