Bank of America has stated that the upcoming earnings results for streaming service Netflix will reveal whether it can hold its own among competitors such as Disney, Apple, HBO and NBC.
Mid-October will see third quarter figures for Netflix released, and it’s guaranteed to have investors paying close attention to the results. In the previous quarter, Netflix subscriber growth didn’t meet company guidance, and so if the company misses its target for two quarters in a row, this will be a first for the streaming giant.
According to CNBC, a Bank of America analyst told clients in a note: ‘Heading into 3Q earnings, we see a make or break quarter for Netflix.
‘Investors likely remain focused on signals from Netflix on the competitive landscape in advance of the launch of Disney and Apple’s direct-to-consumer services.
‘We are also interested to see whether Netflix is seeing faster-than-expected content cost inflation as new competitors.’
Summer 2019 saw Netflix stock fall almost 30% in under 3 months, with stakeholders abandoning their holdings in July after the second quarter earnings report. This was due to results showing a loss in US subscribers, and missing out on international additions by a substantial amount.
CNBC reports that Bank of America sees Netflix shares rising by 67% over the next 12 months, to a figure of $450. Furthermore, it projects third quarter revenues of $5.265 billion. Additional estimates include 62.5 million total US subscribers, and 102.7 million international subscriptions.
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