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Netflix Earnings: 3 Trends to Watch


Netflix (NASDAQ: NFLX) shares trounced the market in 2020 as the streaming video giant capitalized on soaring global demand for at-home entertainment. Subscriber growth and engagement metrics jumped, and the business also posted rising margins and a dramatic -- if temporary -- improvement in cash flow trends.

Investors are bracing for a reversal of a few of those positive trends over the next few quarters as streaming demand settles back down to a more normal level. Netflix is predicting an unusually weak fiscal fourth quarter, for example. Yet CEO Reed Hastings and his team might still have plenty of good news for shareholders when they announce earnings results on January 19.

Let's look at the highlights.

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Source Fool.com

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