Netflix Q3 Earnings Preview: Will the Streaming Giant Rebound From Its Rocky Summer?

Sean Burch

Wednesday’s third-quarter earnings report comes at a critical time for Netflix, only weeks before deep-pocketed competitors in Disney and Apple enter the streaming battle. The streaming giant and its shareholders have been through a wild 2019. Netflix’s stock, after rocketing up more than 40% during the first half of the year, has dropped 25% since July, when the company reported underwhelming subscriber growth — punctuated by a decline in U.S. subscribers for the first time since it separated its DVD and streaming business in 2011. Despite the growing pressure on Netflix, analysts are cautiously optimistic it’ll hit its internal projections of about 7 million new subscribers. Ampere Analysis research director Richard Broughton said he’s anticipating a “bounce back” quarter from Netflix, thanks to the return of several prominent Netflix originals, including “Stranger Things” and “13 Reasons Why,” during Q3. Netflix announced “Stranger Things” Season 3 set a company record when it was streamed by 40 million accounts in the three days following its early July return. UBS analyst Eric Sheridan, in a note to clients last week, also pointed to Q3’s improved slate compared to Q2, but warned fan sentiment is mixed. UBS data based on Google searches showed “Stranger...

Read original story Netflix Q3 Earnings Preview: Will the Streaming Giant Rebound From Its Rocky Summer? At TheWrap