What to Expect From Netflix Earnings?
- Netflix (NASDAQ:NFLX) stock has treaded water over the past few months as investors await the company’s highly anticipated first-quarter earnings report, which is due Tuesday after the bell.
- This earnings report marks the company’s first earnings report that will lap against the emergence of the Covid-19 pandemic.
- In the first quarter of last year, the company added a record 15.8 million subscribers.
- Investors are anxious to see how Netflix fares lapping against this huge growth while also facing stiffer competition than ever from Disney (NYSE:DIS), AT&T (NYSE:T), and others.
NFLX Stock Earnings a ‘Mixed Bag’
- NFLX stock has likely traded sideways into the print because there is data to support both the bull and bear cases.
- On the bearish side, data from SimilarWeb and AppAnnie shows that Netflix download volumes, web traffic, and daily active usage have all trended lower in early 2021.
- On the bullish side, Netflix continues to dominate the standings in terms of having the most watched shows in the streaming world, and research from a plethora of firms shows that churn is presently at its lowest levels in several years — meaning Netflix is keeping a big chunk of all those folks who signed up during the height of the pandemic.
- In other words, it looks like Netflix’s earnings will be a mixed bag.
Should You Buy NFLX Stock?
- I think Netflix stock could pop after this “mixed bag” earnings report.
- Because shares have trended sideways for about six months now, Netflix stock is actually pretty cheap here, if you believe that the streaming giant will continue to dominate the streaming TV landscape for the foreseeable future and continue to add millions of new subscribers every quarter.
- The NFLX stock price today sits around $550. The consensus Wall Street price target is $620.
- A “mixed bag” Q1 with over 5 million net adds and low churn even in the face of the economy reopening and Netflix hiking prices will add firepower to the thesis that Netflix’s robust growth is durable.
- With the stock trading at relatively discounted levels, I suspect a “mixed bag” report will do the trick and push NFLX stock up toward $600.
NFLX Stock Price Forecast
- With the stock trading at relatively discounted levels, I suspect a “mixed bag” report will do the trick and push NFLX stock up towards $600.
- Long-term, my modeling suggests that shares have upside to $1,000-plus levels.
Netflix stock is a great growth stock to buy and hold for the long haul. But the reality is that most of the money in this name has already been made. Everyone already has a Netflix account. Every investor is already long NFLX. The company already has a market cap of $240 billion.
So, while NFLX stock is a great long-term buy, it’s far from the best stock to buy if you’re looking to score 5X, 10X, or even 20X gains in the stock market.
If you’re looking for those kinds of gains, you have to look where no one else is looking — at small, emerging stocks with breakthrough technologies that could change the world, but which no one knows about or is talking about today.
Buying those small tech stocks today could be like buying NFLX stock a decade ago… before it soared thousands of percent.
Identifying these breakout small tech stocks before anyone else — and scoring 10X or bigger gains — is my specialty. That’s my niche in the market. Finding small tech stocks with huge breakout potential first is how I picked names like Advanced Micro Devices (NASDAQ:AMD), Chegg (NASDAQ:CHGG), Tesla (NASDAQ:TSLA), NIO (NYSE:NIO), Plug Power (NASDAQ:PLUG), Shopify (NYSE:SHOP), Square (NYSE:SQ), and many more before most other folks even knew they existed — and scored bigger than 10X gains in all those names.
But these days, my focus is on a whole new set of emerging tech companies that have enormous long-term upside potential. The next AMDs, Netflixs, and Teslas, if you will.
To find out about this new class of potential 10X winners, click here.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
By uncovering early investments in hypergrowth industries, Luke Lango puts you on the ground-floor of world-changing megatrends. It’s how his Daily 10X Report has averaged up to a ridiculous 100% return across all recommendations since launching last May. Click here to see how he does it.