Netflix Earnings: Why I'll Be Watching Subscriber Guidance
Investors will be watching Netflix's (NASDAQ: NFLX) third-quarter update closely this week. After whiffing on subscriber growth in its second quarter, the market will be looking for the streaming-TV giant to prove its growth story is intact. In addition, investors will be looking for more strong revenue growth and progress toward its target for a full-year operating margin of 13%.
While Netflix's update on key third-quarter figures will be important, another key area investors should tune into when the company reports earnings is management's guidance for its subscriber growth in Q4. This guidance will be particularly interesting since Q4 will include the launch of two major competing streaming services: Disney+ and Apple TV+.
Will management provide a cautious outlook for the quarter as competition heats up? Or will the company's guidance for subscriber growth suggest Netflix anticipates little impact from the new competition?
Source Fool.com
