Netflix Q2 Earnings Preview: Can the Streaming Giant’s Big Run Continue?
Netflix has been on a remarkable run the past three months, with its stock price surging and its valuation eclipsing entertainment stalwarts like Disney — as investors look to pour their money into companies that can best weather the coronavirus pandemic. Will that run continue unabated after the company reports its Q2 performance on Thursday? That depends on which analyst you’re listening to. Goldman Sachs analyst Heath Terry expects the streaming heavyweight to easily surpass its projection of adding 7.5 million new customers during the second quarter. (Netflix had 182.8 million subscribers entering the second quarter.) In the past, that’s been a stimulus that leads to a jump in share price — something most recently seen last quarter, when Netflix’s stock surged after reporting it added a company-record 15.8 million new subscribers. “We expect Netflix to report [second quarter] results well above guidance with at least 12.5 million net subscriber additions, as quarterly app downloads reached a record high and [year-over-year] downloads growth reached its highest level since [the first quarter of 2016],” Terry said in a recent note to clients. “We believe this was driven by growth in content on the platform, a lack of competition for entertainment hours...
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